RBI Subscription Recurring Payment Rules — Zoom and Adobe Works. Fortnite Does Not.
As a full time freelancer for over 10 years, I pay for so many subscriptions, I don’t even know. Which means, I am also one of those who are deeply affected. In this post, I try to explain the situation.
For some time now, India is taking note of changing fintech situation in India, and accordingly implementing rules to adapt to changing scenarios. Unlike western countries, India is still, mostly a poor country with majority of population still trying to learn how to use smartphones.
It makes us an easy target for fraud. Given the size of the population, it is better to nip the problems at the source, then, trying to fix money problems after fraud has happened.
I wrote about this earlier, here, in the context of my Apple One subscriptions.
Apple One Subscription India Users — RBI mandate billing problem — and Solution
The new RBI regulations have been creating disturbances for all recurring payments in India. I have a LOT of recurring…
Today, I am looking at three things: Zoom, Adobe and Fortnite.
In all three cases, I tried to use my credit card that has been used for many years now. The card allows me to do international dollar payments and local payments just fine. This is important to mention because I am eliminating the card as the source of the problem.
Both Zoom and Adobe were quick to implement the ‘recurring mandate’ protocol that (I believe) RBI has asked service providers to implement. My understanding is, this will work with any debit/credit and even with UPI.
Here is a screenshot of a Zoom recurring payment would look.
The key element here is ‘standing instructions’. Most importantly, information about how to ‘cancel’ the standing instruction.
I interact western clients most of the time, and there are any number of anecdotal evidence about companies convincing people to subscribe, and how, its almost impossible to cancel stuff.
I believe, this is what RBI is trying to stop. People are notified every month, and they are also constantly reminded to cancel if they want to.
Zoom and Adobe, were able to quickly change their systems to work with this. However, ah, my latest game addiction, Fortnite, sadly has not.
Look at this.
This is for the subscription of Fortnite Crew
Here is a purchase window for standing buying.
Obviously, Epic is willing to spend the neccessary tech effort to make the one time purchase of stuff compliant with RBI.
However, perhaps they dont enough customers like me who want to pay for subscriptions. Hence, they have simply not implemented the subscription system.
I even raised a support ticket, but, the response was a generic one.
Ultimately, I think companies will evaluate this whole new RBI payment rules slowly and adopt as per their business requirements.
Zoom and Adobe have sizable business in India. Epic and Fortnite, not so much.