Recurring Payments

Q: What is the impact on customers?

Effective 1st Oct 2021, the bank will only approve standing instructions if it has been processed as per the new guidelines for ‘Processing of e-mandates on cards for recurring transactions’ by the service providers. There will be no impact on EMI transactions and one-time non-recurring payments. Transaction Old Process New RBI Compliant Process Registration of Subscriptions/ Recurring Payment · 1st transaction/registration with AFA · Select subsequent auto payment frequency · 1st transaction/registration with AFA · At the time of registration, validity period and maximum amount is provided · Bank to provide facility to view/modify/approve/pause/cancel standing instructions before the amount is charged on the card. Subsequent Subscriptions/ Recurring Payment · Auto charge to card without any AFA For merchants which are enabled as per the new regulatory guideline: · If recurring charge amount is less than ₹ 15000 and less than maximum amount, then amount is automatically charged without AFA · If recurring charge amount is more than ₹ 15000 or more than maximum amount, customer needs to approve the transaction via AFA and then amount is charged · Pre-debit notification will be provided at least 24 hours before the due date of recurring charge with details of upcoming transaction ·For merchants who are not enabled as per the new regulatory guideline customers will have to make direct payment to merchant to avail the services

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Frequently Asked Questions

What is “Subscription/ Recurring Payment”?

Subscription/Recurring Payment is a payment method under RBI’s e-mandate guideline, where you register your Kotak Bank Credit/Debit card on a merchant’s app/website. Once registered, your payments get automatically debited at pre-defined intervals.

What are the regulatory changes for Subscriptions/Recurring payments w.e.f. 1st October 2021?

As per the regulatory requirements, some of the key security & safety measures are as listed below:

Subscriptions/Recurring payments registration, modification, deletion on merchant websites will require additional factor authentication (AFA) example: OTP
Customers will get a pre-debit (SMS/Email) notification 24 hours prior to the debit
The pre-debit notification will have a link for the customer to authenticate the transactions with AFA. Without this authentication, the transaction will not be processed.
Customers can opt out of the transaction or the mandate via link provided in the pre-debit notification
Customers can view / modify / cancel any standing instructions set on their card
Any recurring transaction of amount greater than ₹ 15000 will require AFA each time the amount is debited

What is the impact on customers?

Effective 1^st Oct 2021, the bank will only approve standing instructions if it has been processed as per the new guidelines for ‘Processing of e-mandates on cards for recurring transactions’ by the service providers. There will be no impact on EMI transactions and one-time non-recurring payments.

Transaction

Old Process

New RBI Compliant Process

Registration of Subscriptions/ Recurring Payment

· 1^st transaction/registration with AFA

· Select subsequent auto payment frequency

· 1^st transaction/registration with AFA

· At the time of registration, validity period and maximum amount is provided

· Bank to provide facility to view/modify/approve/pause/cancel standing instructions before the amount is charged on the card.

Subsequent Subscriptions/ Recurring Payment

· Auto charge to card without any AFA

For merchants which are enabled as per the new regulatory guideline:

· If recurring charge amount is less than ₹ 15000 and less than maximum amount, then amount is automatically charged without AFA

· If recurring charge amount is more than ₹ 15000 or more than maximum amount, customer needs to approve the transaction via AFA and then amount is charged

· Pre-debit notification will be provided at least 24 hours before

the due date of recurring charge with details of upcoming transaction

·For merchants who are not enabled as per the new regulatory guideline customers will have to make direct payment to merchant to avail the services

How do I register for new Subscription/ Recurring Payment on my card?

Setting up a new Subscription/ Recurring Payments is quick & super easy!

Simply register your Kotak Credit/Debit Card on the merchant’s website/app. Subscription or Recurring Payment mandates have to be registered with the respective merchant. Bank will not be able to register the same.

Can I modify my Subscription/ Recurring Payments?

Yes, you can now modify your payment amount, end date or cancel your payment as per your convenience with an OTP verification i.e. an additional level of authentication (AFA) making it more safe and secure.

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Manage Subscriptions/ Recurring Payments linked to your Kotak Cards