Managalore,oct.17: Shri S R Bansal, Chairman & Managing Director of the Bank launched the e-Mandate (Digital Mandate) services at a Corporate Meet organized by the Bank at Bangalore, today. Shri Fareed Ahmed, Circle General Manager, Shri N Vijaya Kumar, General Manager, Customers and Employees of the Bank were present on the occasion.
The Bank has launched e-Mandate (Digital Mandate) Services in order to provide a modern and robust platform for large volume of repetitive payments, eliminate postdated cheques and also to extend Electronic Clearing Services (ECS) on pan India basis. Many Payments such as utility payments, installment payments, school fee payments, premium payment etc. are still being made through postdated cheques or through ECS Debits. Both the above payment mode involves physical handling/movement of paper based instruments (Cheques, Mandate). Also, ECS debits are presently available only in select locations across India.
The e-Mandate (Digital Mandate) Services launched by the Bank will be leveraging the services of National Payments Corporation of India’s (NPCI) – National Automated Clearing House (NACH) services. National Automated Clearing House (NACH) is a centralised system, launched with an aim to consolidate multiple ECS systems running across the country and providing a framework for the harmonization of standard & practices. It can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.
The e-Mandate (Digital Mandate) Services of the Bank offer highest flexibility to the customers at the same time keeping the cost of operations low for the product. The main activity under the product includes collection of Mandate and Scanning and Uploading of Scanned image to NPCI. The corporate company shall collect duly signed mandate from their customers in the NPCI specified format and deposit with the Bank. The Bank will scan and capture the details and upload it to NPCL with image and mandate data. NPCI shall create a Unique Mandate Reference No [UMRN] and forward the image to destination Bank (A/c holder’s Bank) for acceptance. Destination Bank shall verify the signature of the account holder against signature on the mandate form and accepts/rejects the mandate. NPCI shall send final status of acceptance by destination bank Branch within 5 days (T+5) back to Corporation Bank along with UMRN.
Customers will be provided with MIS on successful transactions/Mandate registration, returns/rejection with reason in the desired format through e-mail or Host-to-Host connectivity. The e-Mandate (Digital Mandate) Services of the Bank will be highly beneficial to Utility companies for monthly subscriptions/bill payments; Insurance companies for periodical premium payment by policy holders; NBFCs & Other finance companies for installment/EMI payments; Education institutions for school fee payment and Manufacturing companies who accepts postdated blank cheques for collecting payment as and when they supply goods.