What changed
RBI has formally included auto-replenishment of FASTag and National Common Mobility Card (NCMC) balances under the existing e-mandate framework. These top-ups, triggered when the balance falls below a customer-set threshold, are exempt from the standard pre-debit notification requirement because they are recurring but without a fixed schedule.
What it means for you
Banks and card issuers can now process FASTag and NCMC auto-top-ups without sending a 24-hour advance notice to customers, reducing friction for users. All other e-mandate rules—like transaction limits and customer consent—still apply, so lenders must ensure their systems comply with the broader framework while updating notification logic for these specific products.
What you must do
- Update your e-mandate systems to recognize FASTag and NCMC auto-replenishment as exempt from pre-debit notifications.
- Ensure customer-set thresholds for auto-replenishment are captured and stored in compliance with existing e-mandate consent requirements.
- Review and align internal processes with all other e-mandate instructions from earlier RBI circulars, as they remain fully applicable.
- Communicate the change to relevant operations and IT teams to avoid unnecessary notification triggers for these transactions.
Who it affects
All Scheduled Commercial Banks, Regional Rural Banks, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Payments Banks, Small Finance Banks, Local Area Banks, Non-bank Prepaid Payment Instrument issuers, Authorised Card Payment Networks, National Payments Corporation of India
Does this circular remove all pre-debit notifications for FASTag and NCMC auto-replenishment?
Yes, for auto-replenishment transactions triggered when the balance falls below a customer-set threshold, the 24-hour pre-debit notification requirement is waived. However, all other e-mandate rules remain in force.
Can customers still set their own threshold for auto-replenishment?
Yes, the circular specifies that auto-replenishment occurs when the balance falls below a threshold set by the customer. Banks must ensure this threshold is captured as part of the e-mandate setup.
When does this circular take effect?
The circular came into effect immediately upon its issuance on August 22, 2024, under the Payment and Settlement Systems Act, 2007.