Amazon suspends 1-month Prime subscription plan, will no longer offer free trial; complying new RBI

•What is the news ?

•Over- the -top (OTT) platform Amazon Prime restricts its users to buy the one-month subscription plan worth Rs 129. It has also discontinued the free Amazon Prime trial pack as well.

•The step has been taken to comply with the Reserve Bank of India’s new guidelines. The RBI has ordered banks and financial institutions to add a factor of authentication to process recurring online transactions. The deadline for the same Is September 30.

• Things to know more

•Currently, new users have only two plans to choose from a three-month plan that costs Rs 329 and a yearly plan that costs Rs 999. The yearly plan seems to make a lot of sense because if you calculate it comes a lot cheaper than the monthly plans.

•“The requirement of Additional Factor of Authentication (AFA) has made digital payments in India safe and secure. In the interest of customer convenience and safety in use of recurring online payments, the framework mandated use of AFA during registration and first transaction (with relaxation for subsequent transactions up to a limit of Rs 2,000, since enhanced to Rs 5,000), as well as pre-transaction notification, facility to withdraw the mandate, etc.

•Principle Objective of the framework was to protect customers from fraudulent transactions and enhance customer convenience. Based on a request from Indian Banks’ Association (IBA) for an extension of time till March 31, 2021, to enable the banks to complete the migration, Reserve Bank had advised the stakeholders in December 2020 to migrate to the framework by March 31, 2021. 

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