In its latest circular on Thursday, the RBI clarified that automatic replenishment of balances in FASTag and NCMC, which is triggered when the balance falls below a customer-defined threshold, will now be covered under the existing e-mandate framework.
These transactions, being recurring but irregular over time, will be exempt from the usual requirement of sending a pre-debit notification to customers 24 hours before the actual charge.
The e-mandate framework, initially put in place through a series of circulars starting in 2019, was designed to protect customers by ensuring they are informed of upcoming debits from their accounts. However, with this latest tweak, the RBI recognises the need for flexibility in cases where transactions are automatic and necessary for the smooth functioning of services such as toll payments and mobility card recharges.
All other provisions of the e-Mandate Framework remain unchanged. This update takes effect immediately and applies in accordance with the Payment and Settlement Systems Act 2007.
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