In a move aimed at making travel by road and metro hassle-free, the Reserve Bank has allowed processing of recurring transactions through e-mandate, which means users can recharge Fastag and National Common Mobility Card (NCMC) through an automatic replenishment facility.
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“The current e-mandate framework requires a pre-debit notification at least a 24-hours before the actual debit from customer’s account. It is proposed to exempt this requirement for payments made from customer’s account for automatic replenishment of balances in Fastag, NCMC, etc. under the e-mandate framework,” the RBI said in a statement.
The central bank said it will now be allowed 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.
The framework for processing of e-mandate for recurring transactions currently enables recurring payments with fixed periodicity such as daily, weekly, monthly, etc.
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RBI Governor Shaktikanta Das said that 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,” he added.
Auto-replenishment of UPI Lite wallet
In another major decision, the RBI has proposed bringing UPI Lite within the ambit of the e-mandate framework by introducing an auto-replenishment facility for loading the UPI Lite wallet by the customer, if the balance goes below a threshold amount.
The UPI Lite facility currently allows a customer to load his UPI Lite wallet upto Rs 2,000 and make payments up to Rs 500 from the wallet.
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“In order to enable the customers to use the UPI Lite seamlessly, and based on the feedback received from various stakeholders, it is proposed to bring UPI Lite within the ambit of the e-mandate framework by introducing an auto-replenishment facility for loading the UPI Lite wallet by the customer, if the balance goes below a threshold amount set by him/her,” Das said after announcing the second bimonthly monetary policy of this fiscal year today.
“Since the funds remain with the customer (funds move from his/her account to wallet), the requirement of additional authentication or pre-debit notification is proposed to be dispensed with. Related guidelines in respect of the above proposal will be issued shortly, Das added.
Commenting on this, Anand Kumar Bajaj, Founder, MD & CEO, PayNearby, “The RBI 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.”
“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,” he added.
