Bhubaneswar: There is a change in rule for bank customers who have opted for auto-debit transactions from their credit and debit cards. Come October 1, 2021, the new additional factor authentication rules will come into effect.
As per the new norms, the Addition Factor Authentication (AFA) is must for transactions below Rs 5,000 on debit cards, credit cards, UPI and other Prepaid Payment Instruments (PPI).
Besides, Standing Instructions set up on credit and debit cards both domestic and international will be processed only with the Addition Factor Authentication.
Customers can go for mandate registration, modification, and deletion with the Addition Factor Authentication.
What are the changes for customers
Customers will receive a pre-debit notification 24 hours prior to the debit through SMS and e-mail. They can opt-out of the transactions with the link provided in the debit notification.
Also, there will be facility to view, modify, cancel any Standing Instructions set on the card of customers.
A maximum amount for each standing instruction can be set as well.
Standing Instruction registered using bank accounts for mutual funds, SIPs, EMIs will continue, reported The Quint.
The process for Addition Factor Authentication
Bank will send a notification via SMS and e-mail to the customer prior to the transaction. The notification will have details on name of merchant, transaction amount, date of debit, reference number of transaction, and the reason for debit.
They can change or cancel a payment within 24 hours. It is advisable to register correct mobile number with the bank.