Amazon Prime free trial and monthly subscription plan have been discontinued in India. This means that Prime users will also not be able to avail these plans. Following this announcement, Prime users can now either opt for a 3-month plan priced at Rs 329 or an annual plan for Rs 999.
The free trial for new members signing up has been discontinued by the brand since April 27th. Now, the company has also removed the monthly subscription priced at Rs 129 per month. Let’s take a look at why Amazon decided to do away with these two plans for its users.
Amazon discontinues Prime free trial and monthly subscription due to RBI guidelines
According to the Amazon Prime Terms and Conditions page on the official website, the new move comes in response to a Reserve Bank of India mandate effective from April 1st, 2021. According to the new mandate, banks may not be able to process any new requests for automated payments on credit and debit cards.
Notably, the guideline was initially announced back in August 2019, where banks and financial institutions are required to implement an additional factor of authentication (OTP) for recurring payments above the set limit. The transaction limit was set at Rs 2,000 previously, which has now been increased to Rs 5,000 and the last date for implementing the mandate has been set for September 30th.
Following this mandate, Amazon has suspended new member sign-ups for the free trial and monthly subscription until further notice. New members can enjoy Prime services by signing up for Rs 329 3-month plan or Rs 999 12-month plan. Notably, an Amazon Prime membership gives you access to the full catalogue of Prime Video, Prime Music, free delivery on eligible items and exclusive deals.