To provide robust platform for large volume of repetitive payments, Corporation Bank has launched the ‘e-Mandate’ (digital mandate) service.
A press release by the bank said here on Friday that the ‘e-Mandate’ service will be beneficial to the utility companies for monthly subscriptions/bill payments; insurance companies for premium payment by policy holders; NBFCs and other finance companies for instalment payments; education institutions for school fee payment; and manufacturing companies.
Now most of these transactions are done either through post-dated blank cheques or through Electronic Clearing Services (ECS). Both the above payment modes involve physical handling and movement of paper-based instruments such as cheques and mandate (in ECS).
The activities under ‘e-Mandate’ include collection of mandate, and scanning and uploading of scanned image to NPCI (National Payments Corporation of India).
The corporate company shall collect the duly signed mandate from their customers in the NPCI-specified format and deposit with Corporation Bank. The bank will scan and capture the details and upload it to NPCI with image and mandate data.
The release said that NPCI shall create a Unique Mandate Reference No (UMRN) and forward the image to destination bank (that is the account holder’s bank) for acceptance. The destination bank shall verify the signature of the account holder against signature on the mandate form.
NPCI, along with UMRN, shall send the final status of acceptance by destination bank branch within five days to Corporation Bank, it said.
The customers will be provided with MIS on successful transactions/mandate registration, returns/rejection with reason in the desired format.
S R Bansal, Chairman and Managing Director of the bank, had launched the service in Bangalore on Thursday.