Do you use your debit or credit card or UPI wallet for recurring auto payments in OTT platforms like Netlfix or Amazon Prime Video? If yes, then you should know that from October 1, 2021, RBI made it as a mandate that the financial institutions will have to ask customers to provide additional two factor authentication if the auto transaction of the payment is above Rs 5,000.
Under the Auto-debit Payment New Rules 2021, a bank is required to send a notification or alert message reminder to the customer at least 24 hours before the auto-debit payment to confirm the transaction. The pre-transaction notification will be sent via SMS, email etc. The reminder notification will inform the customer about the due, name of the merchant, transaction amount, date/time of debit, reference number of transaction/ e-mandate, etc.
How Auto-debit Payment Work For OTT Platforms?
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RBI has issued new rules for Auto debit payments. If you dont comply you might just loose subscription to some of your favorite OTT platforms like Netflix, Amazon Prime Video, Sony Liv, ZEE5 and other OTT Apps. So, If you subscribe to any popular OTT platforms like Hotstar, it requires recurring payment every month and your card details will be saved at the beginning of registering your subscription plan.
The payment will be deducted every month to keep the subscription active. These type of OTT payments also comes under Auto-debit payments and now these transactions also come under the new rules of RBI. So, all the recurring auto transactions need to be authenticated at least before 24 hours of the transaction. If you are not interested to subscribe anymore for the OTT platform, you can easily opt out of the subscription using a link in the reminder notification.
These rules are applicable for all electronic transactions including Electricity Bill payments, Phone Bill Payments and many others. So, you should need to comply with these new rules to keep your subscription plans active.
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