New Delhi, August 23 – In a significant move aimed at enhancing the efficiency of electronic toll collection, the Reserve Bank of India (RBI) has announced reforms that will fully automate the recharge process for FASTags and National Common Mobility Cards (NCMC). This integration into the e-Mandate framework aims to eliminate the disruptions caused by low balances at toll plazas, ensuring a smoother flow of traffic.
According to the RBI, these payment instruments will now automatically top-up from linked bank accounts when funds fall below a preset limit. This development is set to significantly reduce the frequency of vehicles stopping at toll plazas due to insufficient balances, facilitating a more streamlined toll payment process across the country.
The e-Mandate framework, established in 2019, was primarily designed to protect consumers by providing them with prior notifications of automatic debits from their bank accounts. However, with the new system, such notifications for FASTag and NCMC recharges will no longer be necessary, reducing the administrative burden on users and speeding up transactions.
The decision to include FASTags and NCMCs in the e-Mandate framework was initially announced during the RBI’s Monetary Policy Committee meeting from June 5 to 7. The integration of these instruments into the framework is part of a broader effort to increase the adoption and convenience of using FASTags and NCMCs, which are becoming increasingly prevalent for various transactions across India.
Previously, users had to manually recharge their FASTag or NCMC accounts, which could lead to delays and inconveniences, especially when traveling through toll plazas. With the new changes, these instruments will automatically fetch the required funds from linked bank accounts without any need for manual intervention.
This update is expected to enhance the functionality of over 10 million FASTags currently in use, making road travel more efficient for millions of commuters across India. The RBI’s initiative reflects its ongoing commitment to improving the financial ecosystem and promoting digital transactions in the country.
