RBI extends timeline to comply with directions by 6 mnths

Mumbai: The Reserve Bank of India on Wednesday extended the timeline by six months to comply with its guidelines related to recurring online transactions with Additional Factor of Authentication (AFA), but reprimanded players that the non-compliance is a "serious concern".

RBI had directed all banks including RRBs, NBFCs, and payment gateways to comply with AFA for automatic recurring payment by March 31, 2021, in order to make digital transaction safe and protect customers from fraudulent transactions.

However, some of the players failed to meet the deadline and approached the RBI seeking extension of the deadline.

"It is, however, noted that the framework has not been fully implemented even after the extended timeline. This non-compliance is noted with serious concern and will be dealt with separately. The delay in implementation by some stakeholders has given rise to a situation of possible large-scale customer inconvenience and default," RBI said in a statement.

To prevent any inconvenience to the customers, Reserve Bank of India has decided to extend the timeline for the stakeholders to migrate to the framework by six months, i.e., till September 30, 2021, it said.

"Any further delay in ensuring complete adherence to the framework beyond the extended timeline will attract stringent supervisory action," RBI

cautioned.