FasTag New Rules: In these payment systems, as soon as the amount falls below the set limit, money will be automatically added to the customer’s account. This means that now Fastag users will not need to recharge Fastag again and again.
The Reserve Bank of India has introduced a new rule for all banks, under which they will not issue any pre-debit notification on auto-replenishment of some services such as FASTag and National Common Mobility Card (NCMC). Also, RBI has included Fastag and National Common Mobility Card (National Common Mobility – NCMC) in the e-mandate framework.
In these payment systems, as soon as the amount falls below the set limit, money will be automatically added to the customer’s account. This means that now Fastag users will not need to recharge Fastag again and again. It can be said that now the hassle of recharging Fastag will end for the customers. The e-mandate framework was created in the year 2019.
What did RBI say in the circular
The Reserve Bank of India said in a circular that auto-replenishment of balance in Fastag and NCMC, which is triggered when the balance falls below the limit set by the customer, will now come under the existing e-mandate framework. These transactions, being recurring but irregular in time, will be exempt from the usual requirement of sending pre-debit notifications to customers 24 hours before the actual charge.
Why was the e-mandate framework introduced
The e-mandate framework was first introduced through several circulars since 2019 to protect customers by giving them advance notice of upcoming debits from their accounts. In its most recent update, the RBI has recognized the importance of accommodating the need for flexibility, especially in situations where transactions are regular and necessary for the smooth operation of services such as toll payments and topping up mobility cards.
What was in the 2019 RBI circular?
In 2019, RBI said that as a risk mitigation and customer convenience measure, the issuer shall send a pre-transaction notification to the cardholder at least 24 hours prior to the actual charge/debit on the card. While registering the e-mandate on the card, the cardholder shall be given the option to choose a mode from the available options (SMS, email, etc.) to receive pre-transaction notifications from the issuer in a clear, unambiguous and understandable language. The cardholder shall also be provided the option to change this mode of receiving pre-transaction notifications.
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