The Reserve Bank of India is set to drastically change the way certain transactions are conducted by banking users in the country. These changes will be effective from October 1 onwards. Apple Apple has issued a warning advisory to developers building apps for the ecosystem.
In a post on the Apple Developer website, the company wrote, “From October 2021, regulatory requirements in India will apply to the processing of recurring transactions. The Reserve Bank of India has issued a directive that will affect purchases initiated through credit cards and debit cards for auto-renewable subscriptions in India,” Apple said.
As per RBI directive, banks, financial institutions and gateways will be required to obtain user approval by conducting transaction notifications, e-mandates, and Additional Factors of Authentication (AFA) before the transaction is completed.
If developers offer auto-renewable subscriptions in their apps, Apple wants them to do two things to help prevent or resolve declined transactions on the App Store.
Encourage users to pay with Apple ID
If you pay with your Apple ID balance they will not be affected by these requirements at this time. Users can add funds to their Apple ID using most credit and debit cards, net banking, RuPay and UPI. Apple wants developers to encourage users to pay for in-app subscriptions with an Apple ID.
giving users a billing grace period
Apple says on the developer website, “Enable billing grace periods in App Store Connect so customers with declined transactions or other payment issues have time to update their payment information while maintaining access to your app’s payment content.” If there is a grace period, there will be no interruption of the subscription’s paid service days and the app developer’s income will not be affected if the payment is successful within the grace period.