RBI Extends Bank's Deadline For Auto Debit Payments By Six Months

The RBI has extended the deadline for banks failing to adhere to the regulator’s new e-mandate guidelines for recurring payments till September 30. According to the 2019 RBI notification, banks are required to seek approval from customers before auto-debit transactions. Citing it a move to protect customers against fraudulent transactions, RBI earlier fixed it to roll from April 1. Moreover, the banking regulator also asked them to comply or face consequences.