83% of Indian consumers who paid for apps on Google Playstore, Apple App store and Windows Store support RBI to mandate OTP-based authentication for all app purchases and renewals, a LocalCircles survey said.
RBI has stopped automatic recurring payments for all services offered by various companies such as Amazon, Netflix or several applications or apps. This would mean that money cannot be directly debited from a customer’s credit card or bank account without his permission.
RBI’s new rules that came into force from October 1 mandate that banks can only process auto-debit transactions if they send a pre-debit notification to customers at least 24 hours before the payment.
Watch: Changes in the new auto-debit rule explained
RBI has set a rule for banks to take pre-authorisation from customers before deducting payments. From Today, banks will not approve any standing instruction (e-mandate on cards for recurring transactions) given at merchant website/app on credit/debit card, unless it is as per RBI-compliant process. ET’s Saloni Shukla tells you all about this new auto-debit rule. Watch
Many companies and start-ups have claimed that this has caused disruption as many customers are unable to or unwilling to undergo the monthly permission routine.
The survey said that many Indians said that they have had problems with the auto debit rule earlier.
46% of Indian consumers who paid for apps on Google Playstore, Apple Appstore and Windows Store say they had a wrong charge/overcharge issue in the last 12 months,” the survey said.
The survey included 40,000 responses from 302 districts of India.
The LocalCircles survey also pointed out that in most cases Indians bought the apps from foreign entities.
“The next question in the survey sought to understand from consumers if applications they use raise the invoice. In response, 48% said “don’t know”. Breaking down the poll, 33% said the applications they use are billed by a foreign entity. Only 19% of Indian consumers who paid for apps for Google Playstore, Apple Appstore and Windows store said they were invoiced or billed by an Indian entity,” the survey said.
