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NPCI Introduces New UPI Autopay Rule: No 24-Hour Pre-Debit Notification for Mutual Fund SIPs and Loan Repayments.

Banking & Finance | Dated: 07 Oct 2024

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.

🎯 Key Highlights:

  • - 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 June 7, 2024, 'Statement on Developmental and Regulatory Policies,' the RBI announced plans to implement an e-mandate framework for automatic balance top-ups in NETC FASTag and RuPay NCMC.

💡 Other Important Facts:

  • (i) The aim is to streamline the application process for public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities, and securitized debt instruments, aligning it with the process for equity shares and convertibles.
  • (ii) Individual investors will still have the option to use alternative methods, such as SCSBs and the stock exchange platform, to apply for public issues.

📚 Test Your Knowledge:

Which organization Recently introduced the UPI Autopay facility for Mutual Fund SIPs and loan repayments?

Correct Answer: NPCI

🚀 Quick Recap: