Understanding the New Auto Debit Rules for Credit Cards

Posted on Monday, October 30th, 2023 | By IndusInd Bank

Managing credit card payments is an essential part of maintaining financial health. Credit cards offer convenience and flexibility, but it’s crucial to stay informed about the rules and regulations that govern them. In this blog, we’ll delve into the new auto debit rules for credit cards to help you understand what has changed and how it may affect your financial life. We’ll also introduce you to IndusInd Bank credit cards and how they can help you navigate these changes smoothly. 

 
The New Auto Debit Rules 

The Reserve Bank of India (RBI) introduced new guidelines for auto-debit transactions in October 2021. These rules aim to enhance the security of online transactions and protect consumers from unauthorized debits. Understanding these changes is vital for credit cardholders. 

1. Additional Authentication 

One of the significant changes is the requirement for additional authentication for recurring online transactions, if the value is more than Rs. 5,000. Under the new rules, every auto-debit transaction must be authenticated with a one-time password (OTP) or other factors like PIN or biometrics. This provides an extra layer of security, ensuring that you approve each payment. 

2. Opt-In and Opt-Out 

Auto-debit transactions are now on an opt-in basis. This means that you must provide explicit consent for every recurring payment you wish to set up. On the flip side, it’s easier to opt-out of such arrangements if you no longer wish to continue with them. This empowers you with more control over your credit card transactions. 

3. Frequency Limits 

The new guidelines also set frequency limits on recurring transactions. Credit cardholders can set up auto-debits on a per-transaction basis, monthly, quarterly, semi-annually, or annually. This ensures that you are not billed excessively or without your consent. 

IndusInd Bank Credit Cards: Navigating the Changes 

IndusInd Bank offers a range of credit cards designed to provide convenience, security, and flexibility, making it easier for you to adapt to the new auto-debit rules. Here’s how: 

• Enhanced Security 

IndusInd Bank credit cards come with advanced security features, including two-factor authentication for online transactions. This aligns perfectly with the new RBI guidelines, ensuring that your transactions are safe and secure. 

• Transparency and Control 

With IndusInd Bank credit cards, you can easily monitor your transactions and set up auto-debit arrangements as needed. The user-friendly IndusMobile app and online banking services give you complete control over your card’s settings, helping you adhere to the new opt-in and opt-out rules with ease. 
 

• Flexible Payment Options 

IndusInd Bank credit cards offer a wide range of payment options, allowing you to choose the most convenient method for you. Whether you prefer making payments online, through a mobile app, or at a vendor, the bank’s flexibility makes it simpler to comply with the new rules. 

• Diverse Card Options 

IndusInd Bank offers a variety of credit card options, each tailored to different spending habits and financial goals. Whether you’re looking for rewards, cashback, travel perks, or premium services, there’s a credit card that suits your lifestyle. 

Conclusion 

Understanding the new auto debit rules for credit cards is essential to ensure the security and convenience of your financial transactions. The RBI’s efforts to enhance security are commendable, and adapting to these changes is a wise choice. 
 

IndusInd Bank’s credit cards are well-equipped to help you navigate these changes smoothly. With their advanced security features, transparent processes, and a variety of card options, they offer a seamless experience for credit cardholders. 

So, why not explore the world of IndusInd Bank credit cards and experience a financial journey that aligns with the latest regulations while providing you with the flexibility and convenience you deserve? 

Apply Now 

 
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.