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The National Payments Corporation of India (NPCI) has stated that the auto-replenishment of NETC FASTagand RuPay NCMC is permitted without 24-hour pre-debit notification under the UPI Autopay framework with immediate effect.
NPCI made this announcement via a notification issued on September 23, 2024
The banks that issue NETC FASTag and RuPay NCMC should make sure that auto-replenishment, excluding pre-debit notification, is carried out by the criteria and is utilized exclusively for NETC FASTag and NCMC.
The Reserve Bank of India (RBl) had earlier announced in its "Statement onDevelopmental and Regulatory Policies" dated June 7, 2024, that it will facilitate an e-mandate framework for auto-replenishment of balances inNETC FASTag and RuPay National Common Mobility Card.
Later, RBl announced that in cases such as FASTag and NCMC which are recurring in nature but without any fixed periodicity payments for auto. Replenishment will be debited without a 24-hrs pre-debited notification from the bank.
As per the rule on the e-mandate framework prescribed, the issuer should send a pre-debit notification to the customer at least 24 hours before the actual charge or debit to the account.
The RBI circular dated August 22, 2024, said, “It has been decided to include auto-replenishment of FASTag and NCMC, as and when the balance falls below a threshold set by the customer, under the e-mandate framework. Payments for auto-replenishment, since they are recurring in nature but without any fixed periodicity, will be exempt from the requirement of debit notification”
Pre-transaction notification
According to the RBI circular on the processing of e-mandate on cards for recurring transactions dated August 2, 2019, “As a risk mitigant and customer facilitation measure, the issuer shall send a pre-transaction notification to the cardholder, at least 24 hours before the actual charge /debit to the card. While registering the e-mandate on the card, the cardholder shall be given the facility to choose a mode among available options (SMS, email, etc,) for receiving the the-transaction notification from the issuer in a clear, unambiguous manner and an understandable language. The facility for changing this mode of receiving pre-transaction notification shall also be provided to the cardholder.