Tuesday, December 12, 2023

The good news is that this law will take effect in banks on October 1st, but it will be costly otherwise

People frequently pick auto payment mode for monthly bill payment, and the money is immediately deducted when the due day arrives. This service was created exclusively for customers, but there is a risk of fraud.

A big adjustment in the financial system will take place on October 1st. From today, the new auto debit payment system will be activated. Tell us what’s going to happen with this system. Actually, under the auto debit payment method, banks and digital platforms such as Paytm-Phonepe would be required to obtain your authorization before debiting funds for installation or any automated bill payment.

This is a system of automatic debit.

Auto debit simply means that if you have set up auto debit for anything (Bill Payment, Netflix Payment, Installment Deduction) every month, money will be withdrawn from your bank account on a set date every month. However, such adjustments will now occur in the system, so that once the customer’s approval is acquired, the remaining instalments or payments will not be completed automatically.

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Update your bank’s phone number.

Some things are required for this, and you will be responsible for them. First and foremost, your bank account’s cellphone number should be changed. Because the message about auto debit must come directly from your phone. Following the deployment of the new system, you will receive a message 5 days before to your payment date informing you that it is approaching. However, you will receive an OTP before the funds are removed. For approval, you’ll need to enter that OTP. The money will be withdrawn from the account for bill payment only after that.

It is necessary to implement a new system.

People frequently pick auto payment mode for monthly bill payment, and the money is immediately deducted when the due day arrives. This facility was created exclusively for consumers, although there is a risk of fraud. It is also feared that if money is removed without the customer’s authorization, money will be deducted at times other than when the customer is in need, and the consumer will be unaware of it. Changes are being made in this system as a result of this scenario.

For your knowledge, this change is only being applied on auto payments made using debit and credit cards. This means that if you have taken out any form of home, automobile, or personal loan, this method will not work. Because this work is done using your bank account rather than your credit card. LIC or Mutual Fund investments, on the other hand, will be tied to your bank account exclusively. In such a case, the new system’s regulations will also be ineffective.



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