FASTag Updates: A major revision has been made by the RBI in the working of auto-replenishment services like FASTag and NCMC. As per the new rule, banks will no longer send pre-debit notifications before auto-replenishment of such services. Equally important, the inclusion of FASTag and NCMC under the RBI e-mandate framework keeps seamless and unabated usage of the service for its users.
Automatic Replenishment for FASTag and NCMC Accounts
Once the balance in the customer’s FASTag or NCMC account drops below the threshold level set in the system overall, an automatic top-up of the account will keep the required amount in place, without having to manually recharge. This takes out the agony of repeatedly recharging accounts—one problem constantly pulling down the population. The e-mandate framework set up originally in the year 2019 was to safeguard customers, giving them in advance the notice of debits to be charged to their accounts. But the latest revision reflects the recognition that the RBI did not need the inflexibility in something as simple as toll payments or top-ups for public transport.
Auto-Replenishment Now Under e-Mandate Framework
Accordingly, the RBI, while issuing the circular, clarified that henceforth, auto-replenishment of FASTag and NCMC balances would come under the e-mandate framework. Consequently, such transactions, which have usually been exempted from sending the pre-debit notifications at least 24 hours in advance of the charge date, are a good fit for services important for daily operations but whose timing may be less predictable, such as regular toll payments.
Customer Convenience Takes Center Stage
The e-mandate framework, while being originally designed, had a requirement to send a notification to the customer at least 24 hours in advance for any transaction or debit on the card. Customers could also choose any other option available, whether it was through SMS, email, or any other, and had full freedom to change their preferred option at will. With this recent update, the RBI tried to send a message that processes dealing with essential services have to be simplified, maintaining customer convenience and uninterrupted service.
In a nutshell, the new rule by RBI makes auto-replenishment of FASTag and NCMC easier as the system itself ensures that the account maintains enough balance without continuous manual intervention, hence enhancing user experience and operational efficiency.
