In sync with its broad strategy of streamlining and automating digital payments wherever possible, CCAvenue has introduced e-NACH mandates as a payment mode for online businesses in India. E-Mandates provide an efficient web-based solution for facilitating interbank, high volume digital transactions that are repetitive in nature. This RBI-approved service is a major initiative of the National Payments Corporation of India (NPCI) that involves a vast network of leading banks, financial institutions, corporates and government entities, operating as a cohesive unit. Generally, businesses and their customers face difficulties while setting up, initiating and proceeding with recurring transactions for disbursements such as insurance premium, SIPs, loan EMIs, and school fees. For instance, to opt for an EMI loan scheme, Mr. Gopal Krishnan may need to fill up and submit a physical form to an employee who would process it manually or forward it to a network of colleagues. These manual efforts make the entire procedure time consuming and prone to errors much to the dissatisfaction of Mr. Gopal Krishnan, the customer. The conventional procedures for recurring payments, in general, are widely considered to be lengthy, tedious and complicated. E-Mandates have been recently introduced in the country with the objective of overcoming these challenges.
What are CCAvenue e-NACH Mandates?
A mandate is a standing instruction which a consumer provides to his issuing bank and other entities permitting them to automatically debit the specified amount from his bank account on a recurring basis. NACH E-Mandates or API based eNACH is a digital payment service for businesses to collect recurring payments from their customers without any human intervention. NACH stands for National Automated Clearing House, which provides a robust, secure and scalable platform to all participants in the system. CCAvenue offers the e-NACH Mandate option to various categories of merchants such as educational institutions, insurance companies, mutual funds, wealth management entities, financial services, lending platforms, OTTs, utilities and NGOs. Presently, only net banking and debit card credentials of customers are permitted for authentication of CCAvenue e-NACH Mandates.
Benefits of CCAvenue e-NACH Mandates:
E-NACH mandates are a hassle-free and efficient mode of collecting recurring payments from customers. This RBI-backed initiative delivers an enhanced payment experience to millions of consumers across the country. A large number of merchants can now grasp this excellent opportunity to collect recurring payments quickly and effortlessly through our advanced platform and add another layer of convenience for customers, while expanding their businesses substantially. With e-NACH mandates in place, the Fintech industry is expecting considerable expansion of the sector in the long term. Web merchants adopting this payment model are anticipated to achieve significant growth in 2020 and beyond.