Reserve Bank of India has extended the timeline by six months for banks and other financial institutions to migrate to the new framework for processing the recurring online transactions. The financial institutions will now have time till 30th September to implement the new framework. Under the new framework, Additional Factor of authentication has been brought in for recurring auto-payments which have been pre-instructed by the consumers.

To make digital payments in India safe and secure, the banking regulator has introduced an additional safeguard mechanism. The recurring transactions using debit cards, credit cards, UPIs or other prepaid payment instruments will require to be validated by the consumer with an OTP if the transaction value is above 5 thousand rupees. Even if the recurring transaction is less than 5000 rupees, the consumer will get an few days in advance as a reminder to the payment. This new mechanism which was to be implemented from today has been pushed further till 30th September this year. Apart from this, the government has also extended few other major deadlines which were supposed to end today. The last date for linking PAN with Aadhar has been extended till 30th June. The Centre has also extended the Emergency Credit Line Guarantee Scheme aimed at providing financial assistance to small and medium scale industries by another three months till 30th June. Additionally, one of the key policies of the government envisaging better remuneration and healthy environment for workers in the country, the labour codes have also been deferred in want of rules from state governments.