Founded in 2008, the National Payments Corporation of India (NPCI) is a non-profit organisation for all retail payment systems in India that allows Indian citizens to have unrestricted access to ePayments. It acts as a regulatory body that governs eMandates in India. In 2013, the NPCI brought about a web based solution to facilitate direct debit and direct credit transactions that were initiated to reduce high cost credit card payments and processing charges.
This solution was called the National Automated Clearing House (NACH) that helps making high volume, low value debit or credit transactions. It has also come out with a technology called United Payments Interface (UPI) that aims to transform India to a cashless society, entertaining only digital transactions.
Role Of NPCI In eMandate
The NPCI may levy charges for the usage of eMandate system on the following:
- Membership and joining fee.
- Transaction fee.
- Network recovery charges.
- Testing and training.
- Certification and on-boarding charges.
- Taxes and statutory payments.
- Value added fee & miscellaneous charges.
- Penalties for not adhering to eMandate procedural guidelines and any circular issued by the RBI.
The NPCI shall notify all member banks through email, website, letter and circular regarding:
- Inclusion of new member for eMandate.
- Suspension or termination of any member.
- Amendments made in procedural guidelines.
- Regulatory guidelines applicable for processing eMandate.
eMandate Record Keeping
The NPCI maintains eMandate records by requesting all participants to retain copies of their eMandate records in electronic form. The records must accurately reflect the information contained within the document so that both electronic record and a record of authentication can be reproduced for future use/ reference. A participant can preserve an eMandate for a period of 10 years from the date of submission of eMandate.
Amending eMandate Procedural Guidelines
The NPCI can make amendments to eMandate guidelines from time to time by way of circulars. The revised versions of the guidelines may also be issued incorporating the new provisions. Member banks will be notified prior in case the amended eMandate guidelines involves any technical/ software changes.
Termination And Suspension Of NPCI Membership
The NPCI regulates the membership of banks and other members as a part of the eMandate regime:
- NPCI notifies its members regarding termination or suspension in a written form that mentions and cites the reason for offence.
- If the NPCI is of the opinion that non-compliance/ violation situation cannot be resolved, it would lead to suspension/ termination of NACH membership immediately. The violator will be given an opportunity to appeal and call for a decisional hearing within thirty days and thereby decide the re-confirmation or revoke of the termination passed earlier.
- In case violation/ non-compliance is capable for remedy, but cannot be solved within 30 days, then termination/ suspension will not will not be in effect. Therefore, NPCI will extend its investigation to resolve the issue within 60 days of such offence.
- If the entity’s termination is revoked, he/she must apply for a new membership afresh. No automatic restoration of the membership will be granted by NPCI.
NPCI Amends And Cancels eMandates
Only banks that are registred with the NPCI will be able to amend or cancel an eMandate, thus not permitting the customer to do it directly. The mandate cancellation is possible only if it were accepted by the sponsor/destination bank. If eMandate is not accepted by either of the bank, then transaction is not possible in any case.
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