Consumers can now give standing instructions to banks online, asking them to make recurring payments for a variety of services such as payments to insurance companies and mutual fund schemes.
Reportedly, seven banks have gone live on the National Payments Corporation of India’s (NPCI’s) platform, permitting the customers to ask for e-mandate through netbanking.
However, private lender Kotak Mahindra Bank is now allowing its customers to do this using a debit card.
The other banks that are a part of live netbanking are Yes Bank, IDFC Bank, Axis Bank, Central Bank, Bank of Baroda and Punjab National Bank.
Earlier, the process of activating the standing instructions involving customers was done through a paper-based authorisation under the electronic clearing services (ECS).
Earlier, the process was digitised by the National Automated Clearing House (NACH) but still required the use of paper and signature verification was in practice. Later, banks did allow an eSign facility briefly but this was discontinued post the Supreme Court of India’s verdict that restricted the use of Aadhaar.
NPCI’s e-mandate platform allows the users to give standing instructions for paying bills, fees or loan EMI dues to banks, NBFCs, insurers, utility companies, MFs, e-commerce and educational institutions. It will also be an inter-operable network like India’s ATM network, where
