Reserve Bank of India New rules: The Reserve Bank of India has introduced new rules that apply to its e-mandate framework. The rules will impact automatic replenishment of balances on services offered for FASTag and National Common Mobility Card.
According to a circular issued on Thursday, such automatic replenishments in case the money account balance falls below a particular threshold maintained by the customer would not require any prior notification of debit.
This update is part of the Reserve Bank of India‘s plan to streamline repetitive processes proceedings which do not have a fixed periodicity. While FASTag and NCMC are automatically replenished on a non-periodic basis, they will now be included in the guidelines of the existing e-mandate.
Unlike other general repetitive transactions, there will be no obligation to send customers a 24-hour notification prior to debit for these transactions.
Reserve Bank of India quotes June policy
He Reserve Bank of India The circular also referred to its policy announcement in June 2024, where it stated that such transactions will be covered under the e-mandate framework.
“Reference is also made to the Regulatory and Development Policy Statement dated 7th June 2024, wherein it was announced that auto-replenishment of balances in FASTag and National Common Mobility Card (NCMC), which are recurring in nature but without any fixed periodicity, would be facilitated under the e-mandate. 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 pre-debit notification requirement. All other instructions provided under the e-mandate will continue to be applicable.” Reserve Bank of India said in the notification.
Since the e-mandate framework was made more customer-friendly in 2019, all issuers have been mandated to give prior notice on debits which would affect their accounts. But looking for the latest update of Reserve Bank of India It reframes this in relation to the room for manoeuvre required on a daily basis in relation to life’s transactions, which include obligations such as paying tolls and recharging mobility cards in general.
Under the new rulesThe other instructions within this e-mandate framework continue to apply, but the requirement for pre-transaction notification is eliminated on these particular automatic replenishments, in recognition of their critical role in day-to-day services.
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