RBI Adds FASTag and NCMC Auto-Replenishment Payments to E-Mandate Framework

RBI Adds FASTag and NCMC Auto-Replenishment

RBI FASTag: The e-mandate framework of RBI now allows for auto replenishment of Fastags and national common mobility cards (NCMCs). It happens when the balance goes below certain threshold levels as defined by the customer.

“It has been decided to include auto-replenishment of FASTag and NCMC, as and when the balance falls below a threshold set by the customer, under the e-mandate framework,” the circular read.

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In addition, issuers of such mobility tokens are now exempted from the requirement to send a pre-debit notification 24 hours prior to debiting.

This was announced by the RBI in a notification on Thursday saying that payments for auto-replenishment are recurring and have no fixed periodicity hence should be exempted from pre-debit notification. The circular is effective from August 22.

Generally, under the RBI’s e-mandate framework, issuers are required to give a pre-debit notification to customers at least 24 hours before they charge or debit them.

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These notifications must contain details such as merchant name, transaction amount, date and time of debit and transaction reference number/e-mandate. Customers upon receiving the pre-debit notification can opt out of a particular transaction.

For e-mandate based recurring transactions, the limit without AFA is Rs 2000 per transaction while above this limit it must include an AFA.

“The current e-mandate framework requires a pre-debit notification at least 24-hours before the actual debit from the customer’s account. It is proposed to exempt this requirement for payments made from customer’s account for automatic replenishment of balances in Fastag, NCMC, etc. under the e-mandate framework,” the RBI said.

Nevertheless, the latest change concedes that there must be flexibility in instances where deals are automatic and need to occur for example when toll payments are being made or mobility cards topped up.

The RBI’s monetary policy on 7th June announced the inclusion of recurring Fastag and NCMC transactions under e-mandate. In addition, it had highlighted that steps were still being taken to rationalize and modernize payment systems in the country.

All other provisions related to e-mandates remain as they were. The update applies with immediate effect and is enforced as per the Payment and Settlement Systems Act, 2007.

The e-mandate framework was in 2019, by informing upcoming debits to their accounts. to safeguard customers.

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