Auto-debit payments: RBI extends timeline for implementation of new rules

The new norms were supposed to kick in from April 1 but neither banks nor the other stakeholders in the ecosystem had readied their system

The Reserve Bank of India (RBI) on Wednesday extended the deadline until September 30 for all stakeholders to move to the new norms on e-mandate for recurring payments of online transactions. It also came down heavily on banks for not implementing the system in time and threatened "stringent supervisory action" if the deadline is missed again.

In a circular issued on Wednesday, the RBI said: “The delay in the implementation by some stakeholders has given rise to a situation of possible large-scale customer inconvenience and default. Any further delay in ensuring complete adherence to the framework beyond the extended timeline will