 "New UPI AutoPay rule: No 24-hour pre-debit alert for FASTag & RuPay NCMC")
The National Payments Corporation of India (NPCI) has announced changes to the UPI Autopay framework. Effective immediately, auto-replenishment of NETC FASTag and RuPay National Common Mobility Card (NCMC) will no longer require the standard 24-hour pre-debit notification.
This announcement was made via a notification issued on September 23, 2024. Announcement aligns with recent directives from the Reserve Bank of India (RBI) aimed at improving the e-mandate framework for these services.
In its ‘Statement on Developmental and Regulatory Policies’ issued on June 7, 2024, the RBI outlined its plan to introduce an e-mandate framework for automatic balance top-ups in NETC FASTag and RuPay National Common Mobility Card (NCMC).
Later, the RBI specified that for payments related to services like FASTag and NCMC, which are recurring but do not follow a fixed schedule, the auto-replenishment amount will be debited without the need for a 24-hour advance debit notification from the bank.
Key points of the announcement:
The change applies specifically to auto-replenishment of NETC FASTag (MCC 4784) and RuPay NCMC (MCC 7412) under the UPI Autopay framework.
UPI members are instructed to remove the Pre-Debit Notification (PDN) validation for UPI Autopay executions related to these specific Merchant Category Codes (MCCs).
This modification is based on RBI’s ‘Statement on Developmental and Regulatory Policies’ dated June 7, 2024, and a subsequent circular issued on August 22, 2024.
The new system allows for auto-replenishment when the balance falls below a threshold set by the customer, enhancing flexibility for users.
All other instructions under the e-mandate framework remain applicable.
Impact on users and service providers:
This change is expected to significantly improve the user experience for FASTag and RuPay NCMC users. By eliminating the 24-hour pre-debit notification for auto-replenishment, the process becomes more seamless and responsive to users' immediate needs.
NETC FASTag and RuPay NCMC issuer banks are tasked with ensuring that this exception to the pre-debit notification is used solely for the intended purposes of these services.
Implementation and stakeholder action:
The NPCI has directed all UPI remitter banks, Payer PSP Banks, and concerned ecosystem stakeholders to implement these changes with immediate effect. The organisation emphasises the need to communicate this directive to all relevant parties for appropriate action.