Overview
National Payments Corporation of India (NPCI) has implemented “National Automated Clearing House (NACH)”, a web based solution to facilitate interbank, high volume, repetitive and perodic electronic transactions for Banks, Financial Institutions, Corporates and Government Agencies.
NACH System can be used for bulk transactions towards collection of payments pertaining to relevant use cases:
- Financial Services: Mutual Funds, Loan Repayments, Insurance
- Subscription for digital content and services
- E-commerce
- Utilities
- SaaS Businesses
- Ed-techs, Startups and ERP Solutions etc.
Customers may authenticate mandates in the following modes:
API E-Mandate:
- Netbanking: Customer enters their netbanking credentials on bank’s page for mandate authentication and will complete the authorization through an OTP received on his/her mobile number/ email ID registered with the bank.
- Debit / Credit Card: Customer shall enter their debit card number, cvv, expiry date in the card for authentication on the bank’s page and will complete the authorization through an OTP received on his mobile number / email ID registered with the Bank.
- Aadhaar: Customer shall enter their 12 digit Aadhaar number on NPCI ONMAGS page and complete the authorization through an OTP received on his mobile number registered with UIDAI. If the OTP authentication is successful, mandate details with Aadhaar number will be sent to destination bank for checking of Aadhaar number linkage to account number and other details as per banks internal policy. Post successful validation bank to send an OTP to customer on his registered mobile number as per bank CBS and the same is to be entered in the ONMAGS page.
Aadhaar eSign eNACH:
- Aadhaar eSign Authentication: Customer shall enter their 12 digit Aadhaar number on CA-ESP page and complete the authorization through an OTP received on his mobile number registered with UIDAI.
Physical NACH Mandate:
- Physical Mandate: Customer shall sign and fill the mandate form image, which is submitted to the corporate. Digio shares mandate data from the image with the sponsor bank and the same is forwarded to NPCI and subsequently to the destination bank which will verify and authorize the mandate.