The Reserve Bank of India vide its notification dated 31st March 2021 has extended the timeline for processing recurring online transactions to 30th September 2021, from March 2021.
Earlier RBI issued a framework for processing of e-mandates on recurring online transactions. Which was Initially applicable to cards and wallets, the framework was extended in January 2020 to cover Unified Payments Interface (UPI) transactions as well. Based on a request from Indian Banks’ Association (IBA) for an extension of time to enable the banks to complete the migration, the RBI had advised the stakeholders in December 2020 to migrate to the framework by March 31, 2021. Thus, adequate time was given to the stakeholders to comply with the framework.
However it was noted that the framework has not been fully implemented even after the extended timeline. The delay in implementation by some stakeholders has given rise to a situation of possible large-scale customer inconvenience and default. To prevent any inconvenience to the customers, Reserve Bank has decided to extend the timeline for the stakeholders to migrate to the framework by six months, i.e., till September 30, 2021.
