The statement comes after the RBI introduced new guidelines for recurring payments in October, which made it mandatory for customers to renew standing instructions for services they have opted for. RBI also said that all payments above Rs 5,000 should adopt an additional layer of authentication.
“For SaaS businesses where you have customers’ credit cards on file, there is some improvement we can make with the RBI payments infrastructure. rules aren’t helping SaaS companies,” said Matribootham NASSCOM Product Conference,
The primary objective of RBI in adopting the new framework is to protect consumers from fraudulent transactions and increase convenience by allowing them to more easily exit services. However, the rules have hit tech and startup firms that rely on regular payments from customers.
“I know the rules exist for a reason and to protect consumers from fraud, but perhaps we should have a whitelist of good companies that are allowed to build their businesses,” Mathrubhumi said.
He said that the Indian SaaS ecosystem has done a good job of persuading venture capital investors to support startups, while both the central and state governments have recognized startups and put in place policies to promote them.