Fastag Wallets Now Auto-Recharge Thanks To RBI’s Latest Update

The Reserve Bank of India (RBI) has announced that payments under Fastag and the National Common Mobility Card (NCMC) can be made at any time, without a fixed schedule. This means funds will be credited to the account as needed.

Many vehicle owners often forget to recharge their Fastag wallets, leading to double toll charges. However, this issue has now been addressed by the RBI. When the Fastag balance dips below a certain limit, funds will automatically transfer from the customer's bank account to the wallet.

Automatic Recharge for Fastag and NCMC

This automatic transfer is possible due to the RBI's inclusion of Fastag and NCMC in the e-mandate framework. The RBI announced on Thursday that these payment instruments are now part of this framework, eliminating the need for users to manually add money repeatedly.

The e-mandate framework was established through a series of circulars starting in 2019. It aims to protect customers by notifying them of upcoming debits from their accounts at least 24 hours in advance.

Understanding the e-Mandate Framework

Under the e-mandate system, payments for fixed-term facilities like daily, weekly, or monthly services are automatically deducted from the customer's account at a predetermined time. Users must initially grant permission for these automatic debits through an electronic mandate.

The RBI's press release clarified that there is no fixed time for payments under Fastag and NCMC. Payments can be required at any moment, so funds will be credited from the account without a set schedule.

This new system ensures that when balances fall below a specified limit, funds are automatically deducted from the customer's account and added to these wallets. This removes the hassle of manual recharges for users.