RBI allows auto-refilling of FASTag, NCMC without pre-debit notification

The Reserve Bank of India (RBI), in a notification regarding the processing of e-mandates for recurring transactions today, allowed auto-replenishment of FASTag and National Common Mobility Card (NCMC) if the balance falls below a threshold. The central bank says there won't be any "pre-debit notification" of such transactions in case the balance drops below the set limit.

"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 framework," an RBI notification says.

The RBI said that payments for auto-replenishment -- since they are recurring in nature but without any fixed periodicity -- will be "exempt" from the requirement of pre-debit notification.

Announcing developmental and regulatory policies on June 07, 2024, the RBI announced the auto-replenishment of balances in FASTag and NCMC, which are recurring but without fixed periodicity, will be facilitated under the "e-mandate framework". Under the said framework, the issuer i.e. banks, NBFCs and other stakeholders sends a pre-debit notification to the customer at least 24 hours prior to the actual charge or debit to the account. However, for FASTag and NCMC payments, which are recurring in nature but without any fixed periodicity payments, money will be debited without prior intimation, the RBI says.

So far, the RBI’s framework for the processing of e-mandate for recurring transactions enabled recurring payments with fixed periodicity such as daily, weekly, monthly, etc. "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, into the e-mandate framework. These categories of payments are made as and when needed and, therefore, their replenishment is not time specific or amount specific. Under the e-mandate framework, it is proposed to introduce an automatic replenishment facility for such payments. The automatic replenishment will be triggered when the balance in Fastag or NCMC falls below a threshold amount set by the customer," the RBI said in its June 7 announcement.

On the processing of e-mandate for recurring payments, the RBI in its August 21, 2024, notification said it had been receiving requests from industry stakeholders to allow the processing of e-mandate on cards for recurring transactions with additional factor authentication (AFA) during e-mandate registration and first transaction, and simple or automatic subsequent successive transactions. The mandate is applicable for transactions done using all types of cards – debit, credit and prepaid payment instruments (PPIs), including wallets, with the maximum permissible limit at ₹2,000.

"All other instructions related to card transactions shall be applicable on these e-mandate-based recurring card transactions. No charges shall be levied or recovered from the cardholder for availing the e-mandate facility on cards for recurring transactions," the RBI said.