Slack October 16, 2021 Reserve Bank of India’s new mandates causes slew of declined transactions


Reserve Bank of India’s new mandates causes slew of declined transactions

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At the beginning of October, new mandates from the Reserve Bank of India came into effect, and they seem to have caused a surge of declined transactions from online payment processors. In a message from Patreon to one developer, they stated that the developer would not be able to recover any declined bills from patrons from India at this time. It was also stated that future declines are likely until a solution is found.

Prior to posting the transaction, the card issuer must obtain approval from the cardholder via a separate SMS or email notification, e-mandate, or additional factor of authentication (AFA).  The new rules were brought about by a reported increase in complaints from consumers that recurring billing for subscription services were difficult, or in some cases, impossible to cancel. 

Don Apgar, PaymentsJournal

Originally meant to go into effect in April, the new mandates were delayed until October as a grace period for merchants to change over to RBI’s new online transaction framework. The framework was designed to ease online transactions for customers. However, certain transactions apparently do not meet RBI’s requirements and could be declined.

On Wednesday, Apple reminded developers that due to the new directive, “some transactions that don’t meet these requirements will be declined by banks or card issuers.”

Manish Singh, TechCrunch

As Patreon is affected, this will no doubt affect many creators on the platform. Only time will tell how soon it’ll be before this issue can be resolved.

External Reference(s)

Tech giants brace for impact in India as new payments rule goes into effect:

Reserve Bank of India:

Reserve Bank of India Mandates New Rules for Recurring Subscriptions:


Photo by Pickawood on Unsplash:


A purveyor of the written word. My speciality is story-crafting but I dabble in other interests from time to time. Speaker of six tongues, master of only one.

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