Starting October 1, 2025, the way online digital payments are made in India is set to undergo a significant change. The Reserve Bank of India (RBI) has issued new regulations to make online transactions more secure. These regulations will directly impact both consumers and businesses, especially those using subscription-based services, such as OTT platforms or music streaming.
What do the new RBI guidelines say
According to the new RBI guidelines, starting April 1, 2026, all recurring transactions made with credit or debit cards, i.e., monthly or annual automatic payments, will require additional security. This simply means that no automatic payment will be made without your consent.
Under the new regulations, banks will be required to send a notification to customers at least 24 hours before each recurring payment. This notification will include the transaction amount, date, and name of the company to which the payment is being made. The customer must approve this notification. If the customer does not do so, the transaction will not be completed.
What impact will this change have on customers?
This revolutionary change is extremely beneficial for customers as it will protect their money. Until now, many apps and services deducted money monthly after a one-time authorization, but now customer approval will be required for every transaction. This rule will prove extremely effective in preventing fraud and will also help customers better monitor their spending.
Challenge for Merchants and Banks
Implementing the new rules poses a major challenge for banks and online merchants. They will have to update their systems to send timely notifications to customers and obtain their approvals. If a bank or company fails to comply with these rules, it may face fines from the RBI. Due to this, all online service providers are working to update their systems with immediate effect.
A Strong Step Towards Digital India
This move by the RBI is a positive and bold initiative towards Digital India. Its primary objective is to ensure the safety of customers’ money. While this process may be a bit frustrating for some initially, it will be extremely beneficial for customers in the long run. These guidelines will not only reduce fraud but also help customers better track their expenses.