New Delhi: The Reserve Bank of India (RBI) has announced a significant upgrade to the payment systems for Fastag and the National Common Mobility Card (NCMC). Effective immediately, these payment instruments will benefit from an automatic recharge feature, eliminating the need for manual top-ups.

The RBI has integrated Fastag and NCMC into its e-mandate framework, which allows for automatic fund transfers from customers’ bank accounts to these wallets. This means vehicle owners and transit users will no longer need to worry about insufficient balances leading to double toll charges or disruptions in service. When the balance in a Fastag wallet or NCMC dips below a specified threshold, funds will be automatically transferred from the customer’s linked bank account.

The e-mandate framework, which began with RBI circulars in 2019, facilitates automatic payment deductions for recurring services like utility bills and subscriptions. Customers must initially authorize these deductions through an electronic mandate. This system protects users by providing advance notifications of any upcoming debits, typically at least 24 hours before the transaction.

Unlike traditional fixed-schedule payments, the new system for Fastag and NCMC allows for transactions at any time. This flexibility ensures that funds are credited to the respective wallets as needed, without adhering to a fixed schedule.

The automatic recharge feature significantly enhances user convenience by preventing lapses in Fastag and NCMC balances. This innovation addresses common issues such as double toll charges due to low balances and the need for frequent manual recharges.

By incorporating Fastag and NCMC into the e-mandate system, the RBI aims to simplify financial management for users. The automatic transfers ensure that users are always prepared for tolls and transit payments without the constant need to monitor and replenish their wallets manually.

How It Works

  1. Authorization: Users will need to grant an initial electronic mandate allowing automatic deductions from their bank accounts.
  2. Threshold Limits: The system will automatically transfer funds when the wallet balance falls below a pre-set limit.
  3. No Fixed Schedule: Payments are processed as needed, providing flexibility and preventing potential disruptions in service.

The RBI’s move to include Fastag and NCMC in the e-mandate framework represents a significant improvement in payment convenience for users. This upgrade is expected to streamline transactions and enhance the overall user experience by reducing the manual effort required to maintain wallet balances.

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