RBI Introduces New Rules for Auto Payments on Foreign Subscriptions

The Reserve Bank of India (RBI) has introduced new regulations for automatic payments made to foreign services.

Now, if you set up an e-mandate (a system where money is automatically deducted every month) using your card or UPI for services like Netflix or YouTube, you will receive a notification 24 hours before the payment is processed.

Additionally, banks will be required to implement Additional Factor Authentication (AFA), such as OTP verification, before processing these payments.

This change allows users to pause or stop automatic payments at any time, giving them greater control over their subscriptions.

The primary objective of these new rules is to protect users from digital fraud and provide better transparency and control over recurring transactions.