The Reserve Bank of India (RBI) has declared plans to merge UPI Lite with the e-mandate system on Friday (7 June, 2024), allowing UPI Lite balances to refill automatically.
Governor Shaktikanta Das highlighted the goal is to improve the ease of small digital transactions.
Further, the Governor said, “The adoption of e-mandates for recurring payment transactions has been increasing. It is now proposed to include payments, such as replenishment of balances in FASTag, National Common Mobility Card (NCMC), etc. which are recurring in nature but without any fixed periodicity, in the e-mandate framework. This will enable customers to automatically replenish the balances in FASTag, NCMC, etc. if the balance goes below the threshold limit set by them. This will enhance convenience in making travel/mobility related payments.”
This simply means that users will not have to manually reload their cards once the balance falls below the chosen threshold.
Currently, with UPI Lite, users can load their wallets up to Rs 2,000 and use it to make payments of up to Rs 500.
What is E-Mandate?
E-mandate, or electronic mandate, is a standing instruction given by users to their bank and other institutions to automatically deduct a specified amount digitally from their bank account.
It streamlines digital payment services to meet various payment requirements without requiring ongoing personal involvement.
Initially offline, e-mandate was introduced by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI).
Also Read: RBI alert: Beware of Prepaid Payment Instruments issued by unauthorised apps or websites!
E-mandate can be utilized for multiple purposes such as bill payments, SIPs, insurance premiums, OTT subscriptions, etc. Despite its automated nature, users are notified of any debit at least 24 hours in advance.
What information is required for an e-mandate?
Depending on the bank and platform, users typically need to provide specific details for e-mandate, including bill particulars (consumer number, meter number, plan name, policy name), start and end dates, and the limit amount.
Want to learn the art and science of managing your money? The 1% Club can help. Details here
