At the Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI) on June 7, Governor Shaktikanta Das announced a proposal to include Fastags and metro cards under the e-mandate framework. Fastags are used for cashless payment of toll charges on highways, while metro cards or National Common Mobility Cards (NCMC) are used for online payment of metro ticket charges.
The inclusion of Fastags and NCMC under the e-mandate framework will enable users to set up auto-recharge for these payment instruments. This means that users will no longer need to manually recharge their Fastags and NCMC every month. Instead, the authorized bank or non-banking finance company will automatically deduct the required amount.
Benefits of Including Fastags and NCMC in the E-Mandate Framework
Governor Das explained that the adoption of e-mandates for recurring payment transactions has been increasing. By including Fastags, NCMC, and other similar payments in the e-mandate framework, customers will be able to automatically replenish the balances in their Fastags and NCMC if the balance goes below a threshold limit set by them. This will enhance convenience for making travel and mobility-related payments.
UPI Lite to Also Be Included in the E-Mandate Framework
In addition to Fastags and NCMC, the RBI also announced that UPI Lite will be included in the e-mandate framework. UPI Lite, introduced in September 2022, enables small value payments in a quick and seamless manner through an on-device wallet. Users can load up to ₹2,000 in their e-wallets and make payments up to ₹500 without entering a verification PIN, reducing the time taken to complete payments.
Governor Das stated that to encourage wider adoption of UPI Lite, a facility will be introduced for customers to automatically replenish their UPI Lite wallets if the balance goes below the threshold limit set by them. This will further enhance the ease of making small value digital payments.
Overall, the inclusion of Fastags, NCMC, and UPI Lite in the e-mandate framework demonstrates the RBI’s commitment to promoting digital payments and enhancing convenience for users.
