The Reserve Bank of India (RBI) has extended its e-mandate framework to include auto-replenishment of FASTag balances. This move aims to simplify recurring transactions that do not follow a fixed schedule – case in point toll payments. Under the updated framework, FASTag balances will be automatically replenished whenever they fall below an amount set by the customer. This eliminates the need for manual top-ups, making the process seamless for users who rely on FASTag for highway toll payments.
FASTag is an RFID-based system that allows for automatic toll collection and significantly reduces waiting times at toll plazas. By integrating auto-replenishment into the e-mandate framework, the RBI intends to avoid disruptions caused by insufficient balances. Payments for this auto-replenishment will be recurring in nature but are exempt from pre-debit notifications (as per the revised guidelines).
