Recurring pain

RBI must re-examine its auto-debit restrictions

The Reserve Bank of India’s (RBI’s) new rules controlling recurring payments on credit or debit cards came into force on October 1. It is unfortunate that, in spite of a lengthy period for discussion of these rules, consumers are facing considerable chaos. Many auto-debits failed for customers and smaller enterprises that depend upon online payments sharply revised their revenue estimates downward. While the RBI’s motivation in attempting to protect consumers from unwanted payments on their cards is laudable, any regulation can only be judged by its outcomes. The inability to manage a smooth transition to the new system is, in