In its monetary policy meeting held in June 2024, the RBI announced inclusion of recurring payments for Fastag, National Common Mobility Card (NCMC), etc. with automatic replenishment facility under the electronic shipments structure.
The RBI circular dated August 22, 2024, said, “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. Auto-replenishment payments, since they are recurring in nature but without any fixed periodicity, will be exempted from the requirement of pre-debit notification.”
FASTags and NCMC payments will be easier – you won’t have to add money manually for every recharge
This means that in cases like FASTag and NCMC, which are recurring in nature but without a fixed periodicity, auto-replenishment payments will be debited without any notification from the bank.
As per the prescribed e-mandate framework norm, the issuer must send a pre-debit notification to the customer at least 24 hours before the actual debit or charge in the account. The RBI’s monetary policy statement dated June 7, 2024: “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, under the e-mandate framework. These categories of payments are made as and when required and, therefore, their replenishment is not time- or amount-specific. Under the e-mandate framework, it is proposed to introduce an auto-replenishment mechanism for such payments. Auto-replenishment will be triggered when the balance in Fastag or NCMC falls below a threshold amount set by the customer.”Pre-transaction notification
According to the RBI circular on processing of e-mandates on cards for recurring transactions dated August 21, 2019, “As a risk mitigation and customer facilitation measure, the issuer shall send a pre-transaction notification to the cardholder, at least 24 hours prior to the actual charge/debit from the card. While registering the e-mandate on the card, the cardholder shall be provided with the facility to choose a mode from the available options (SMS, email, etc.) to receive the pre-transaction notification from the issuer in a clear, unambiguous manner and in understandable language. The facility to change this mode of receiving the pre-transaction notification shall also be provided to the cardholder.”
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.