Blog Article

The dawn of Internet banking has helped the net evolve as a remote delivery channel for banking services such as opening a deposit account or transferring funds to different accounts. Similarly, an eMandate is the modern form of online payment that the Government of India has taken to move towards digitization.

The eMandate process is carried out by the National Payment Corporation of India (NPCI) that offers banks, financial institutions and Government (s) debit and credit through the National Automated Clearing house (NACH). NACH is a platform for banks to route debit and credit using IFSC Code / MICR Code etc. An eMandate is the newest method of electronic payments and will reduce the burden of processing funds to the destination bank (Your personal bank). However, here is a gist of the various participants and their duties in facilitating such an online feature.

Duties Of Participants In eMandate

There are different participants in the process of eMandate. These participants play an important role in facilitating the process of eMandate.

Corporate

A corporate may be a company or a bank that you have requested for an eMandate so that they can auto-debit your bank account. The roles and responsibilities of corporates include the following:

• Offers eMandate as a payment option for recurring payments.
• Merges with a payment aggregator (Paytm, PhonePe, Chillr) to offer payment option through Aadhaar-based (Fingerprint) eMandate
• Provides online storage of eMandate information and response received from the payment aggregator or destination bank.

Payment Aggregator

A payment aggregator refers to the different types of payment gateways like Paytm, Chillr, CCAvenue etc. in India. The roles of a these payment aggregator in eMandate are as follows:

• Merges with corporate eCommerce page to recur payments using your bank account.
• Merges with the destination bank’s net banking gateway to enable registration of eMandate.

Destination Bank

A destination bank refers to the bank account you hold to automate debits. The roles and responsibilities of a destination bank in the process of eMandate are:

• Merges with the payment aggregator process of eMandate registration using net banking.
• Provides confirmation of eMandate on payment aggregators net banking page.
• Automates end-to-end process of eMandate submission to the National Automated Clearing House (NACH) system.
• Customer authenticated eMandates will be submitted to NACH system within 48 hours.
• Adheres to record maintenance policy.
• In case a dispute arises, provision of authentic eMandate information as evidence will be provided.
• In case a physical mandate is submitted by a customer, authentication and verification of the mandate will be initiated through the NACH system within 48 hours.

Sponsor Bank

A sponsor bank is one that is merged with the National Payments Corporation of India (NPCI) for the purpose of enabling eMandate process. The roles and duties of the sponsor bank are as follows:

• Registration of eMandate information received from destination bank within 48 hours.
• Provides eMandate information to the respective corporate. (company/ bank)

With the modern banker being time-specific, and impatient in going about various banking procedures,  the adoption of eMandates will benefit in digitization of the Indian economy. If you are one who is looking out for a hassle-free, time-saving and confusion free mandate process, then it’s time for you to have an upgrade to its version 2.0 namely eMandate.