RBI Facilitates Hassle-Free Travel with Automatic Recharge for Fastag and Metro Card Users
The Reserve Bank of India (RBI) has announced a significant amendment to its e-mandate framework, allowing for the automatic replenishment of balances in Fastag and National Common Mobility Card (NCMC) accounts.
The RBI stated, “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 the customer’s account for automatic replenishment of balances in Fastag, NCMC, etc.”
Under this new provision, recurring payments such as the replenishment of balances in Fastag and NCMC, which do not adhere to fixed periodicity, will now be incorporated into the e-mandate framework. RBI Governor Shaktikanta Das emphasized the significance of this decision, stating, “These categories of payments are made as and when needed, and therefore, their replenishment is not time specific or amount specific.”
Furthermore, the RBI introduced an automatic replenishment facility for UPI Lite wallets within the e-mandate framework. This facility enables customers to load their UPI Lite wallets automatically if the balance falls below a predetermined threshold amount, enhancing the seamless usability of UPI Lite for small-value transactions.
In response to these developments, Anand Kumar Bajaj, Founder, MD & CEO of PayNearby, remarked, “The RBI’s focus on promoting small-value digital payments is a positive move towards empowering Digital Bharat. Integrating UPI Lite with the e-mandate framework will benefit people in Tier 2-3 towns and rural regions, who frequently rely on small-value payments for daily needs.”
He further added, “This initiative is expected to spur consumption, contributing to the growth of our country’s economy. We appreciate the RBI’s efforts, which align with the initiatives of fintech companies like ours. These efforts are crucial in supporting the less tech-savvy population and helping them become part of the digital economy.”