RBI payment rules: RBI said it brought in the rules to protect customers following complaints of auto-debit transactions being done without consent.
Nasdaq-listed Freshworks' founder and CEO Girish Mathrubootham called on the Reserve Bank of India to create a whitelist of "good" companies so that they are not affected by the rules on payments.
RBI's auto-debit guidelines for recurring payments kicked in from October, following which subscribers of various services had to renew their standing instructions, while it also brought in additional layer of authentication for payments above Rs 5000.
Mathrubootham said that the rules were not helping SaaS companies.
"Some rules are not helping SaaS companies when it comes to RBI and payment infrastructure. We should have a whitelist of good companies to let them build their business," Mathrubootham said while speaking at the Nasscom product Conclave on Wednesday.
The rules have impacted several SaaS companies and other startups who rely on recurring mandates or their services.
RBI said it brought in the rules to protect customers following complaints of auto-debit transactions being done without consent.
"There can be some improvement in RBI payment infrastructure. I know rules exist to protect consumers, but if a whitelist of good companies is allowed, they can grow their business," Mathrubootham said.
Mathrubootham added that the Indian government along with state governments have come up with several encouraging policies for startups in recent years.
Freshworks, started by Mathrubootham in Chennai, became one of the first SaaS companies from India to list on Nasdaq in September.
(Edited by : Anshul)
First Published: IST