What is e Mandate?
A brand new payment service has been introduced and launched by the National Payments Corporation of India (NPCI). This new payment service is known as the National Automated Clearing House or in short, NACH. It can be said that this e-NACH or e Mandate has come as a blessing to the Indian finance sector. The primary function of e Mandate is to make it easier for businesses to collect recurring payments. For a long time, the job of collecting recurring payments was vested only in the hands of banks, corporations, and various financial institutions. This puts a heavy load on these institutions as they also have to deal with other kinds of financial issues. Therefore, a dedicated payment service introduced only for collecting recurring payments was much-needed. It became an easy and sustainable solution that made the collection of recurring payments smoother. e Mandate makes the process of bulk transfers, including subsidies, salaries, pension, etc extremely easy. It is a very efficient system that works seamlessly even in the case of inter-bank transfers. High volume transfers are of no trouble now due to the existence of the e Mandate.
Overview of the e Mandate system
A consumer needs to provide authorization to a bank or corporate body or financial institution so that they can debit or credit funds to the consumer’s account. This authorization is a NACH mandate. The NACH mandates consolidate numerous Electronic Clearing Services or ECS. This, again, enables high and low volume exchanges to happen smoothly on the platform of NACH e Mandate. It is very hard to incorporate various branches of the banks under one umbrella. The NACH e Mandate’s presence throughout the nation will make it possible to accommodate the whole of the banking system despite the varied locations of the numerous branches of the banks. There has been rapid and exponential growth with regards to e Mandate. In fact, about 82,000 crore banking allowed by bank branches has been seen by the NACH mandate.
The sphere of influence of e Mandate has spread widely and exponentially over the years. At this point, such is the case that even students reap the benefits of this platform and go for e Mandate registration. As for students, this platform becomes extremely useful when it comes to them making recurring payments to repay the student loan. Therefore, it can be said that it is best to not bind the platform only to corporate finance. In fact, doing so would result in not making full use of the wide scope of e Mandate and narrowing it down to simply provide solutions for corporate finance and in the process, underestimating the capability of the platform.
Checklist for e Mandate
The functioning of e Mandate is very smooth and seamless. This is more so because of the absence of paperwork required. In any system, the process of going through paperwork makes the system slower and a bit clumsy. The efficiency of e Mandate has increased manifold because of the lack of paperwork. Another factor that has increased the efficiency of this platform and has made it faster is the online verification process. Physical verifications take longer and depend on the time and availability of both the parties as opposed to online verification where both the submission of the documents and the verification can be done at the convenience of each party respectively, making e Mandate registration a fluent process. Here are a few things that a consumer must have for e Mandate registration:
● NetBanking Authorization
At this point, net banking is the most common and primary mode for e Mandate. Thus, without net banking authorization, e Mandate registration will be of no use for a consumer. Therefore, before registering for e Mandate, one should be sure to get their net banking authorization done.
● Bank Account
Anyone can apply to register for e Mandate as long as the merchant website has the program. If they do, it can be directly set up from the website of the participating merchant via net banking. The only thing the individual is required to have is a bank account that is linked with the Aadhar card.
● Aadhar Card
Aadhar card is something that is required almost in every walk of life in India. Be it some office work or hotel check-in, it becomes very hard to do anything without displaying one’s Aadhar card. The same is the case with e Mandate registration. Even though e Mandate does not require an abundance of redundant documents, the Aadhar card is one document that one cannot do without, in this case. Above that, it is a must for the Aadhar card of the said person to be linked to their phone number.
● Email Account
An email account is another thing that a person cannot do without when it comes to e Mandate registration. After one has registered successfully and the e Mandate has been activated, the said person will be communicated about the mandate via email. Therefore, the absence of an email account makes communication impossible.