In a bid to promote the use of digital currency, technology and transaction based brand eMudhra has launched it’s Aadhaar eSign-based National Automated Clearing House (NACH).
This platform would act as a gateway for large and small enterprises in helping them to collect recurring payments from its consumers.
“The new initiative from eMudhra is aimed at helping slash costs for enterprises and to bring about accountability in payment processes,” said V. Srinivasan, Chairman, eMudhra.
With NACH, eMudhra is pledging to promote cashless electronic transactions. This service will enable the customer to authenticate a payment process with the help of a one-time password (OTP) that will be provided to the mobile number synced with her/his Aadhaar number. The customer can also opt for a biometric fingerprint scanner instead of using the OTP service.
The brand is expecting a slash of 95 per cent in its transaction related expenses.
“It will also bring in efficient banking for the customers. Let’s say you go to a white goods shop to purchase something on instalment. The entire thing was done on paper. With this, customers can just e-sign and it will be processed through NACH for verification. Our role is to authenticate the documents (online),” said Srinivasan.
“The eSign based NACH mandate will offer huge benefits in terms of legal non-repudiation, significantly lower costs and eliminate errors since the entire process is now digital,” he said.
Several renowned brands namely Oriental Bank of Commerce, Punjab National Bank and Syndicate Bank, have partnered up with eMudhra’s NACH. “We have already started working with them (to set up the new service),” explained Srinivasan.
The company is expected to execute between 25-30 million transactions in the next one year.