YES BANK, India’s 4th largest private sector bank announced successful launch of end-to-end process for corporates to accept NACH Debit mandates from its customers through Net banking.
With the Indian payment industry entering the next level of transformation with the National Payments Corporation of India’s (NPCI’s) National Automated Clearing House (NACH), YES BANK aims to fully support the new clearing service aiding corporates with APIs to integrate with their payment systems to accept online NACH mandates at their respective payment gateways instantly.
API eMandate requires integration between Corporate Clients, NPCI and the Bank’s Retail Net Banking platform through APIs. Through API based e-Mandates, corporate clients of the bank will be able to secure NACH Debit Mandate i.e. one-time payment instruction from their consumers/users through an online interface, thereby reducing dependency on the present paper intensive process.
Commenting on the development, Ajay Rajan, Group President and Global Head Transaction Banking Sales, YES BANK said, “Since inception, YES BANK continues to lead in the API Banking space. In our continuous endeavor to provide best-in-class ‘digital first’ service to our customers, we are pleased to launch e-mandate using APIs becoming 1st bank to introduce API based Digital NACH on-boarding for Corporate Clients. With the introduction of this service, we are not only heralding a new chapter in automating everyday transactions & payment work-flows of thousands of corporate clients associated with us, but also ensuring that we as a Bank achieve significant operational efficiencies through digitization of critical client-facing processes.”
NACH Debits has vide applicability across client segments like Utility Companies, NBFC, Insurance, Mutual Funds, and Education Institutes etc. The bank aims to leverage API based e-Mandates to enable significant cost and operational efficiencies for banks and corporates vis-à-vis the existing paper based process. For instance, under the paper based NACH Debit registration process mandate, registration can take anywhere between 15 to 20 days while under the API based process the mandate registrations will be done in 2 days from online authentication by the consumer.
Introduction of API e-Mandates follows e-Mandate introduced by NPCI after the eSign (Aadhar) based version, where YES BANK has already gained leadership position in the industry.
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