RBI Clears E-Mandate for Auto-Replenishment of FASTag & NCMC

Current Context: The Reserve Bank of India (RBI) has expanded its e-mandate framework to include the auto-replenishment of balances for FASTag and the National Common Mobility Card (NCMC).

• Here’s the Key points::
• Auto-Replenishment: The new framework allows for the automatic top-up of balances for both FASTag and NCMC when they fall below a certain threshold set by the customer. This ensures that users do not face any inconvenience due to insufficient balance.
• No Pre-Debit Notification: Unlike other e-mandates where a pre-debit notification is sent to the customer, the auto-replenishment for FASTag and NCMC will not require such notifications. This makes the process faster and more seamless.
• Customer Convenience: This update aims to enhance user convenience by reducing the need for manual recharges and ensuring uninterrupted services. It is particularly beneficial for frequent travelers who rely on these services regularly.
• Security and Compliance: The framework ensures that all transactions are secure and comply with the RBI’s guidelines on e-mandates, which include provisions for customer consent and data protection.

Question:

1 What is the primary purpose of the RBI's expanded e-mandate framework for FASTag and NCMC?

• A) To promote the use of mobile banking
• B) To enable the usage of FASTag and NCMC for international travel
• C) To increase the interest rates on balances
• D) To automatically top-up balances when they fall below a certain threshold

Answer: D) The new framework allows for the auto-replenishment of balances for FASTag and NCMC when they fall below a customer-set threshold. This ensures that users do not face any inconvenience due to insufficient balance.