The Reserve Bank of India (RBI) has announced a significant update to its e-mandate framework, expanding its scope to include the auto-replenishment of balances for FASTag and the National Common Mobility Card (NCMC). This move is aimed at streamlining recurring transactions that lack fixed periodicity.

In its latest circular on Thursday, the RBI clarified that auto-replenishment of balances in FASTag and NCMC, which trigger whenever the balance drops below a customer-defined threshold, will now be covered under the existing e-mandate framework.

These transactions, being recurring but irregular in timing, will be exempt from the usual requirement of sending a pre-debit notification to customers 24 hours before the actual charge.

The e-mandate framework, initially established by a series of circulars starting in 2019, was designed to safeguard customers by ensuring they are informed of upcoming debits to their accounts. However, with this latest adjustment, the RBI acknowledges the need for flexibility in cases where transactions are automatic and necessary for the seamless functioning of services like toll payments and mobility card top-ups.

All other provisions under the e-mandate framework remain unchanged. This update takes effect immediately and is enforced under the Payment and Settlement Systems Act, 2007.