Note: The eSign based eMandate services have been suspended following the Circular No: NPCI/2018-19/NACH/CIRCULAR NO.35 issued by the NPCI. However, we still offer API based eMandate services. Contact us to know more.
A fresh wave of easiness has enveloped Banking in India with the vast use of Internet-enabled services like the mobile & internet banking.
Customary hassles like manually filling elaborate documents, long queues towards the counter, and getting a sign of approval from the discerning banker have now started to form a nostalgic memory to the customer as the RBI has been fairly receptive to implementing innovative technologies to offer an easier banking experience.
The recent past has witnessed multiple new age technologies being tested by the RBI with an aim to save substantial expenses and expedite services.
Banking is indeed a pivotal sector in all economies in the world and these 3 technologies could play a significant role in simplifying the existing processes.
Though a physical (handwritten) signature is still more popular than its electronic version, it’s underlying mechanism, the Audit Trail provides a convincing argument for the wider adoption of eSign for authenticating documents in banking as well as other industries.
The Audit Trail essentially eliminates all chances of fraud or forgery associated with the handwritten signature while providing seamless convenience to signer to authenticate his/her claim over the document.
Two forms of virtual signatures are legally binding in India according to the IT Act of India, 2000.
- Dongle-based Digital Signature
- Aadhaar based eSignature
Many recurring payments including the dividend, instalments and utility payments which require recurring efforts from the sender is now automated with the use of eMandate.
From about 15 days to a few hours for the documents to get approved, going digital has proven to add a dynamic dimension to the mandate.
Also, the fact that eMandate can be authenticated by the legally binding eSign makes for an added convenience to individuals and businesses who can now complete the previously arduous procedure from the convenience of their smartphone or computer and in most cases, initiate payments on the same day.
3. Block Chain Technology
While eSign and eMandate have already proven to benefit the consumers in a progressive manner, the application of Blockchain could transcend the banking experience in fancy ways.
Cybersecurity has been a huge concern with banking across the world as colossal money has been stolen by deft hackers since the beginning of internet-enabled services.
However, Blockchain’s impossible-to-hack network is known to provide binding security to such mishaps.
Picture this, a SecurityWeek report suggests a Hollywood style crime wherein about $1 billion is said to have been stolen from 100 banks spread over 30 countries since December 2013.
There being a multitude of such crimes, the software attacks like the recent Wannacry Ransomware too have put global banking in a litmus test.
Blockchain’s emergence has been providential in such times as the technology is said to not only negate all such instances but also make transactions, especially cross-border transactions ridiculously cheap.
The technology has proven to carry out comprehensive authentication functions, eliminating the need for intermediaries.
The Near Future
Banking in India is clearly in for progressive times. The Reserve Bank of India has been proactive in bringing eMandate under the National Automated Clearing House (NACH).
It has also announced a model platform for digital transactions with the Blockchain network.
Also, SBI has combined with 27 other banks in the country to explore Blockchain solutions like Smart Contracts and ekYC.
The emergence of these technologies, especially Blockchain, is comparable to the emergence of the Internet in the 90’s and early 2000’s – though it witnessed slow, gradual progress initially, it has managed to make a sweeping impact on global economy.
The impact of these new technologies being subjective to various factors, the consumer is definitely in for greater convenience going forward given the massive knowledge capital that has been arrived at.
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