Rbi Emandate

eMandate is a feature by which the customer's bank initiates the mandates to the sponsor bank (to which the amount has to be paid) or to the customer. The corporate moves the mandate via the sponsor bank to the concerned bank with the attributes of customer authentication. The eMandate system makes it easier for issuance and confirmation of mandate by the customers through alternate channels to a paper-based mandate. This article is a detailed account of eMandate.

Objectives of eMandate

The objectives of e-mandate are as follows:

To create an authenticated mandate by the customer using electronic channels.
To mandate the acceptance cycle of auto acceptance of mandates.
To ensure secured and assured mandate acceptance.

Authentic Channels

Internet-based authentication.
Mobile-based authentication using UPI.
Aadhaar based authentication.
Any authentication by the issuer of the mandate in an electronic form through either online or offline mode.

A customer can submit a mandate form to the concerned bank branch, to which the destination bank raises an eMandate.

Eligibility

Banks in India, who are associated with any payment system /channel approved by the Reserve Bank of India may take part in the E-mandate process of National Automated Clearing House (NACH) system as “sponsor/destination Banks” by submitting the required documents. The corporates will be required to develop their e-commerce portal or reach an agreement with an aggregator to participate in the process (these regulations are subject to further conditions).

Charges Levied

National Payments Corporation of India (NPCL) levies charges for the usage of the eMandate system of NACH. These charges include:

Joining/Membership fee
Transaction fee
Network recovery charges
Certification and on-boarding charges
Taxes and statutory payments
Testing
Training
Charges for offering value-added services
Fines and penalties

The intervals for collection of such charges and the mode of the collection would be decided by NPCI in consultation with NACH steering committee and would be communicated to participating banks. NPCL furnishes a schedule of charges to all member banks. All charges would be without the inclusion of service tax or any other statutory charges that have to be paid separately.

Submission of eMandates

The destination banks, after verifying and confirming the authentication of the mandate, have to submit the mandate to NACH system for onward transmission to the sponsor bank within 48 hours of completion of the activity.

Liability

It is the customer's responsibility to provide all material facts to establish the authenticity of the transactions debited to his/her account and thereby avoid any disputes concerning the same. The customer's banks would be responsible for:

The authenticity of the mandate and underlying transactions.
Amounts debited to the account in case of wrong debits.

Transactions cannot be originated without obtaining a

Unique Mandate Reference number (UMRN), and this can be generated only after the eMandate record is created by the liability of the sponsor bank/corporate.

Amendment and Cancellation of eMandate

Customers cannot amend/cancel the mandate directly and therefore have to approach the concerned bank. Cancellation of a mandate is possible if mandates are accepted by the sponsor/destination bank in NACH MMS system. If a mandate is not accepted by either of the banks, then initiation of the transaction is not permitted.

Amendment to Procedural Guidelines

The revised versions may be issued by incorporating new provisions on frequent time intervals. Banks will be informed beforehand if it involves software changes at the level of participating banks.

Residual Claim

If there are any claims that are not covered under these guidelines, applicable NACH PG and RBI guidelines will prevail.
If claims are not covered under the RBI guidelines, the banking laws/relevant legal laws would be applicable.
If there is any claim made on the functionality of the process, NPCI officers are authorised to define such process and get the approval of the steering committee established for this purpose.

Penalty

If the mandates are not processed/submitted by the concerned stakeholders within the stipulated timeline, NPCL may impose a penalty on the defaulting member banks after consulting with the steering committee

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Frequently Asked Questions

Common questions about RBI eMandate System in Financial Technology Services.

eMandate is a feature that allows customers to authenticate mandates electronically through various channels such as internet banking, mobile banking, or Aadhaar-based authentication. It enables the customer's bank to initiate mandates to the sponsor bank or the customer, streamlining the process of issuing and confirming mandates.

The primary objectives of eMandate are to create an authenticated mandate by the customer using electronic channels, enable auto-acceptance of mandates, and ensure secure and assured mandate acceptance.

The authentic channels for eMandate include internet-based authentication, mobile-based authentication using UPI, Aadhaar-based authentication, and any other electronic authentication method approved by the mandate issuer, either online or offline.

Banks in India that are associated with any payment system or channel approved by the Reserve Bank of India can participate in the eMandate process of the National Automated Clearing House (NACH) system as sponsor or destination banks. Corporates need to develop an e-commerce portal or reach an agreement with an aggregator to participate.

The National Payments Corporation of India (NPCI) levies charges such as joining/membership fees, transaction fees, network recovery charges, certification and on-boarding charges, taxes, statutory payments, testing charges, training charges, charges for value-added services, and fines and penalties for using the eMandate system of NACH.

The destination banks, after verifying and confirming the authentication of the mandate, have to submit the mandate to the NACH system for onward transmission to the sponsor bank within 48 hours of completing the activity.

No, customers cannot amend or cancel an eMandate directly. They have to approach the concerned bank for cancellation or amendment of the mandate.

If a mandate is not accepted by either the sponsor or destination bank in the NACH MMS system, the initiation of the transaction is not permitted.

The customer's bank is responsible for the authenticity of the mandate and underlying transactions, as well as for any incorrect debits to the customer's account.

If there is a claim that is not covered under the eMandate guidelines, the applicable NACH Procedural Guidelines and RBI guidelines will prevail. If the claim is not covered under RBI guidelines, the relevant banking laws or legal laws will be applicable.