In a strategic move aimed at bolstering India's digital payments landscape and advancing financial inclusion efforts, the Reserve Bank of India (RBI) governor has unveiled plans to expand the e-mandates framework. This expansion will now encompass non-periodic recurring payments, extending its reach to services such as Fastag and UPI Lite.
Under this framework extension, transactions involving the replenishment of balances in Fastag and the National Common Mobility Card (NCMC), both recurring in nature, will be integrated. This integration ensures that the wallets associated with such payments will be automatically topped up.
The RBI governor highlighted the significance of this initiative, stating, "This will empower customers to effortlessly maintain adequate balances in Fastag, NCMC, and similar platforms, ensuring seamless travel and mobility-related transactions."
Moreover, building upon the launch of UPI Lite in 2022, which aimed to facilitate hassle-free small-value payments through on-device wallets, the RBI now proposes to integrate it into the e-mandate framework. This proposed integration will enable customers to set threshold limits, triggering automatic replenishment of their UPI Lite wallets when balances fall below the specified threshold.
By incorporating UPI Lite into the e-mandate framework, the RBI aims to further streamline the process of conducting small-value digital transactions, enhancing overall convenience for users.
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