The Reserve Bank has decided to extend the timeline for the stakeholders to migrate to the framework for processing of e-mandates on recurring online transactions by six months to September 30, 2021. The deadline was set to expire on March 31.
But, the central bank decided to extend the deadline as the framework is not fully implemented by banks and to prevent any inconvenience to the customers because of lack of preparedness by the system, the RBI said.
"This non-compliance is noted with serious concern and will be dealt with separately. The delay in implementation by some stakeholders has given rise to a situation of possible large-scale customer inconvenience and default," the RBI said, adding any further delay in ensuring complete adherence to the framework beyond the extended timeline will attract stringent supervisory action.
What does the RBI rules on recurring transactions mean to you if you have an auto-debit arrangement? Here’s a simple explainer on this new rule.