RBI Plans to Expand Automatic Payment Services. New Proposals Include FASTag and NCMC Integration

The Reserve Bank of India (RBI) is looking to widen the scope of its automatic payment services. The central bank has proposed including FASTag and the National Common Mobility Card (NCMC) in this expansion. Under the new proposal, these services would automatically recharge from a customer’s account when the balance is low.

Customer-Defined Balance Limits

Customers will have the flexibility to set their own balance limits for these automatic payments, offering more personalized control over their finances.

Governor’s Announcement on E-Mandate

RBI Governor Shaktikanta Das announced these changes during the Monetary Policy Committee (MPC) decision briefing on Friday.

He explained that the ‘e-mandate’ system currently allows for automatic payments from customer accounts for services with fixed periods like daily, weekly, or monthly subscriptions.

The proposed changes aim to include services and platforms that do not follow a fixed payment schedule but require payments when the balance is low.

E-Mandate: A Quick Recap

The e-mandate service was launched by RBI on January 10, 2020, to facilitate digital payments. Under the existing framework, customers receive a notification at least 24 hours before money is withdrawn from their accounts.

Proposed Changes to Notification Requirements

The new proposal suggests waiving the 24-hour notification requirement for automatic payments for FASTag, NCMC, and similar services under the e-mandate framework.

UPI Lite to Get Auto-Replenishment Feature

RBI also proposed bringing UPI Lite under the e-mandate framework. Currently, UPI Lite allows customers to keep up to ₹2,000 in their wallet and make payments of up to ₹500.

To enable seamless use, RBI plans to introduce an ‘auto-replenishment’ feature, which will automatically top up the UPI Lite wallet when the balance falls below a user-defined limit.

Simplified Authentication Process

According to RBI, since the funds remain with the customer (transferred from the account to the wallet), the need for additional authentication or pre-withdrawal notifications will be eliminated.

Guidelines Coming Soon

RBI has stated that relevant guidelines for these proposals will be issued shortly, providing more detailed instructions and implementation timelines.

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