The Reserve Bank of India (RBI) has recently updated its electronic mandate (e-mandate) regulations, significantly raising the transaction limit for recurring payments like FASTag recharges and metro card top-ups. This adjustment aims to simplify the process and enhance user convenience for regular commuters and vehicle owners across India.
Updated E-Mandate Limits:
Previously, e-mandates for recurring transactions required additional factor authentication (AFA) for amounts exceeding ₹5,000. However, with the new guidelines that came into effect immediately as announced in December 2023, this limit has been increased to ₹1,00,000 per transaction. This change applies to various categories, including mutual funds, insurance premiums, and now extends to FASTag and metro card payments.
Impact on FASTag and Metro Card Users:
For users, this means a smoother transaction experience with fewer disruptions. Commuters can now set higher limits for automatic debits, ensuring uninterrupted services for toll payments via FASTag and regular travel via metro systems without the need to frequently top-up or face payment failures due to exceeded limits.
Security and Convenience:
The RBI has maintained strict security measures to safeguard these transactions. The necessity for AFA remains for the first transaction or when altering the mandate, but subsequent transactions can proceed seamlessly within the set limits.
Implementation Across Banks and Payment Networks:
All scheduled commercial banks, along with payment and card network providers, have been instructed to update their systems to comply with the new limits. This broad implementation ensures that the updated e-mandate benefits are accessible to a wide range of consumers across various financial platforms.
The RBI’s decision to increase e-mandate limits for recurring transactions like FASTag and metro card payments significantly enhances the ease of use for millions of Indian commuters. By facilitating higher transaction limits under e-mandates, the RBI promotes not only convenience but also the adoption of digital payment solutions in the public transportation sector.
