New RBI norms kick in today, may hit 50% recurring payments

Tt would take at least three months for the entire payments system to start working smoothly, say companies and banks.

Industry players across payments, merchants and banking ecosystem fear that 50 to 60 per cent recurring transactions may fail on October 1 as the Reserve Bank of India's changes on recurring payments kick in. Even as several banks sent out messages to customers announcing the new rules, industry sources indicated that extension of the timeline could prevent a likely disruption in business.    

If RBI does not give an extension, it would take at least three months for the entire payments system to start working smoothly, several company and bank executives told Business Standard. 

“India could experience lakhs of transactions