OTTs wary as RBI auto-debit rules may hit business

Video streaming services are worried as the September 30 deadline to implement Reserve Bank of India’s new rules on auto debit payments nears. Over-the-top (OTT) platforms fear they will lose customers who may henceforth find it more tedious to make payments.

Under the new rules, all recurring transactions will need additional authentication. For payments exceeding ₹5,000, a one-time password (OTP) will have to be validated by a customer each time a payment is due.

Typically, OTT services’ monthly plans are cheap but the platforms are still anxious as all automatic payments will require customer approvals when an alert is generated. This would make the process cumbersome, affecting consumer experience, especially if they have subscribed to multiple services, executives at streaming platforms and media analysts said.