The Reserve Bank of India (RBI) has decided to simplify balance management by integrating FASTags and National Common Mobility Cards (NCMC) into the e-mandate framework. Users can now set up automatic payments to refill their FASTags and NCMC balances whenever they dip below a specified threshold.
This move is expected to enhance convenience for individuals making travel and mobility-related payments, as they won’t need to manually top up their balances each time they run low. It aligns with the increasing trend of using electronic mandates for recurring payment transactions and reflects the RBI’s commitment to promoting digital and hassle-free payment solutions.
What is E-Mandate?
E-mandate, or electronic mandate, is like allowing your bank to automatically take out a certain amount of money from your account for specific payments. It’s all done digitally, so you don’t have to visit the bank or talk to anyone.
Once you set up an e-mandate, the bank will deduct the chosen amount from your account for bill payments, subscriptions, or insurance. You won’t need to do anything manually each time a payment is due. The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) introduced e-mandates to make digital payments easier for everyone.
You can use e-mandates for various things like paying bills, setting up SIPs (Systematic Investment Plans), paying insurance premiums, or even subscribing to OTT services for entertainment. Even though e-mandates don’t need human involvement, you’ll still get a notice at least 24 hours before any money is taken out of your account.
What You Need for E-Mandate
When setting up an e-mandate, you’ll need to provide some details depending on your bank and the platform you’re using. Typically, they’ll ask for:
- Information about your bills, like your consumer number, meter number, or plan name.
- Start and end dates for the e-mandate.
- The maximum amount you want to authorize for each transaction.
Once you’ve set up the e-mandate, you won’t have to worry about manually topping up your cards when the balance gets low.
RBI’s e-mandate to Make Digital Payments Easier
The Reserve Bank of India (RBI) governor has announced a big step to boost digital payments and financial inclusion. They’re extending the e-mandates framework to cover more types of recurring payments, like Fastag and UPI Lite, which don’t happen on a fixed schedule.
This means payments for things like refilling balances in Fastag and National Common Mobility Cards will now be included in the e-mandates system. These payments don’t happen regularly or for a specific amount, so it’s hard to predict when they’ll occur. But now, with e-mandates, the balances in these payment wallets will automatically top up when they fall below a certain level set by the customer.
Normally, there’s a 24-hour waiting period before the money is taken from your account under e-mandates. However, the RBI wants to skip this waiting period for Fastag and NCMC payments, making it even more convenient for users.
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