The Reserve Bank of India on Thursday decided to include auto-replenishment of FASTag and the National Common Mobility Card in the e-mandate framework.
E-mandates can automatically replenish FASTag and NCMC when the balance drops below a threshold the customers have set, the central bank said in a press release.
Payments for auto-replenishment, since they are recurring in nature but without any fixed periodicity, will be exempt from the requirement of pre-debit notification, the RBI said. All other instructions provided under the e-mandate framework shall remain the same.
On June 7, the RBI's monetary policy announced the inclusion of recurring payments for Fastag and NCMC under the e-mandate framework. It had also highlighted the continued efforts to streamline and modernise payment systems in the country.
"The adoption of e-mandates for recurring payment transactions has been increasing. It is now proposed to include payments, such as replenishment of balances in Fastag, NCMC, etc., which are recurring in nature but without any fixed periodicity, into the e-mandate framework," the RBI had said.
This move will make travel and mobility-related payments more convenient and will ensure users do not face interruptions due to insufficient balances.
The previous e-mandate framework required a pre-debit notification to be sent to customers at least 24 hours before the actual debit from their accounts.
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