While communicating with its consumers, Apple has suggested they should use UPI or net banking to make payments instead of debit & credit cards. In its mail, the company has mentioned that this revision in the payment system has been made in wake of new instruction issued by The Reserve Bank of India (RBI), that a company cannot store the details of credit or debit cards for any type of transactions.
Apple Emailed Its Consumers
Email conveyed a message to the customers, “In light of upcoming Reserve Bank of India regulations, starting June 1, credit and debit cards can no longer be used for purchases or subscriptions on the App Store or other Apple services. Apple will no longer store card information on file — protecting your payment method is our top priority.”
While suggesting switching to UPI or Net Banking the Email said, “To avoid interruptions to your subscriptions and other purchases, please do the following:
- Add UPI or Net Banking as a payment method.
- add funds to your Apple ID balance.
Your subscriptions will continue as long as you have a sufficient balance. If you are an Apple Music, TV+, iCloud+ or third-party subscriber and we cannot renew your subscription, your subscription will automatically expire.”
Regulations From RBI
Apple, an American Tech Giant has revised its method of payments for its consumers in the light of the RBI regulations issued in 2020. As per the instructions given by the Central Bank, a company cannot store or record any information regarding debit cards or credit of its consumers for any type of transaction. Further, the bank regulator has asked the companies to switch to the “card tokenization method or Card on File Tokenization (CoFT).”
RBI suggests the companies use random token numbers instead of credit or debit cards if the user is willing to activate recurring payments. The company had also asked the regulator to provide an extended period to implement the changes. That’s why the last date was further extended to June 30, 2022, from January 1, 2022.