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

Banking & Finance

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 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.

     

Main Points:-   (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.


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