[ad_1]
The e-mandate framework, originally established in 2019, was designed to protect consumers by notifying them of upcoming debits at least 24 hours in advance. This notification typically includes details such as the merchant’s name, transaction amount, date and time, and a reference number. While this system remains in place for most transactions, the auto-replenishment feature for FASTag and NCMC has been exempted due to its unique nature.
The RBI has set a limit of Rs 2,000 per transaction for e-mandate-based recurring payments that do not require additional factor authentication (AFA). Any transaction exceeding this limit will still need AFA to ensure security.
This update to the e-mandate framework highlights the RBI’s commitment to making digital payments more seamless while maintaining safeguards for consumers. The circular, issued under the Payment and Settlement Systems Act, 2007, is expected to streamline the use of FASTag and NCMC, providing convenience for users who rely on these services for daily travel.
[ad_2]