look news india
RBI FASTag Rule Update: The Reserve Bank of India has introduced a new rule for all banks. Under which no pre-debit notification will be issued on automatic replenishment of services like FASTag and National Common Mobility Card (NCMC). Apart from this, RBI has included FASTag and National Common Mobility Card (NCMC) in the e-mandate framework.
In this payment system, if the amount is below a certain limit, the customer's account will be automatically linked, saving customers the hassle of recharging Fastag again and again. Since the customer's account is directly linked to the Fastag account, there is no need to worry about checking the Fastag balance. The e-mandate framework was created in 2019.
RBI said in the circular…
Automatic replenishment of balance in Fastag and NCMC, which kicks in when customers have a balance below a certain threshold, will be covered under the available e-mandate framework, a RBI circular said. This facility will eliminate the need for pre-debit notifications to be sent to customers 24 hours before the actual charge.
Rationale behind launching the e-mandate framework
The e-mandate framework was first introduced in 2019 through a circular to enhance the security of customers by giving them prior notice of debit from their account. But as per the current update, secure auto transaction facility has been implemented with the help of RBI facility requirement and technology.
