RBI's auto-debit guidelines: Standing instruction rules hit smaller payments on day 1

NEW DELHI: As the new auto-debit guidelines given by the Reserve Bank of India (RBI) came into effect from Friday, customers faced several issues especially in making smaller payments on day 1.


Standing instructions set for mobile, utility and subscription plans for streaming platforms like Netflix, YouTube, Amazon Prime Video have also been hit.

However, larger payments such as ECS debits for home loans, vehicle loans, insurance premiums and mutual fund installments remained unaffected.

"In many cases, standing instructions are placed with the bank account and not on one's credit and debit card. Also as merchants - banks, insurance companies and mutual funds are compliant with RBI rules. So far we have seen no problems with standing instructions (SIs)," said a HDFC Bank representative.

Banks have published list of authenticated merchants on their bank websites for the benefit of customers.

They have also been sending emails and coordinating with customers, ahead of the change on auto-debit rules.
Customers, who have faced problems in trying to set up SIs, have approached banks to get their email address, other details updated. Bank customer Sarthak Raja, who is facing issues with his Netflix account, said that he has approached the bank to get his email address changed and a new SI set.

"Customers need to ensure that their registered mobile number and email address are updated - as we are communicating with customers via email and SMS for additional authentication requirements," said a bank manager at State Bank of India.

For new standing instructions, customers will need to do a registration process and re-enter the validity period and maximum amount of the standing instruction.

Banks said they will notify customers 24 hours ahead of the payment due with the amount and name of the merchant involved.

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