The Reserve Bank of India had issued a circular requiring banks and participant service providers to adhere to specific guidelines for processing recurring debits from credit cards, debit cards and pre-paid instruments. The RBI had given a deadline of 30th September 2021 for participants to adhere to these guidelines. The important aspects of the guidelines are as follows.
As quite a few service providers have not met the deadline, the banks have started withdrawing the recurring payment mandates asking the consumers to utilize alternate means to enable payments on time.
Utility and service providers now need to employ alternate mechanisms to collect payments from consumers. ACH Mandates is the tried and tested mechanism tailor made for recurring payments of small and large value payments at any frequency. ACH payments have been streamlined and matured over a decade in India. Setting up ACH mandates can be simple, totally digital and instant. Utility providers can partner with Fintech providers such as Paycorp.io to setup ACH mandates instantly and collect payments seamlessly without any disruption to the collection process. Paycorp.io ensures same day realization of payment as against the 2 day for realizing card-based payments. Paycorp.io offers easy and low code interface with any system. Paycorp.io offers convenient payment mandate setup through whatsapp, email, and SMS. Utility providers may continue engaging with their bankers with no change to the technology platform or business flow while switching.
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Make your digital payment platform fast, safe, and fool-proof with Paycorp.io. We offer a diverse combination of cloud-based payment processing for various businesses. Whether you are an SME, a larger company, or a digital lender, we have a cloud-based, end-to-end payment solution for everyone. Frame your instructions, disburse and collect payments, realize revenue, and reconcile payments simply and efficiently with our robust payment solutions.