SECURITY UP BUT GO-AHEAD CRITICAL

Advantages

The new e-mandate rule protects customers from many payment frauds related to recurring transactions. Requirement for customer authorisation gives customers greater control.

Banks to take greater care prior to authoristing payments.

Disadvantages

Failure to authenticate recurring payments on time could lead to disruptions in services, such as television and internet based subscription services.

NRIs who have not linked their banking services to their overseas mobile numbers will not be able to receive their SMS notifications.

NRI customers will now need to keep a close eye on their upcoming recurring payments in India and make arrangements with their banks to ensure that they receive notifications on time to avoid disruption of services linked to such payments.