eSign based E-Mandate
NPCI has now permitted Aadhaar-based authentication for E-Mandates. This is a welcome change after the government body had initially suspended eSign based E-Mandate in a circular released in 2018. E-sign based E-Mandate for all member banks will be launched from June 1, 2020.
This new move will permit customers to authenticate their E-Mandates using Aadhaar-based eSign, and will improve efficiency and the speed at which banks can now process mandates.
How can your bank start using eSign based mandates
The circular released by NPCI states that eSign based mandates will need to have additional validations to use eSign based mandates. Furthermore, if the data and mandate are not presented as per the specifications issued by NPCI, this will lead to rejection by the central validation systems.
The technical specifications provided by NPCI, in a circular released on July 17, 2018, are as follows:
The Sponsor or Corporate bank must ensure that –
- The last 4 digits of the customer’s Aadhaar number prefixed with a zero, are captured in open content in XML format
- E-sign tags in the XML format are such that
- A digital certificate contains the last four digits of Aadhaar number
- Signed content does not contain the Aadhaar number
The Destination bank must ensure that –
- Open content data of the mandate is cross-checked with all the signed content except for the Aadhaar
- Last 4 digits of the Aadhaar in the digital signature are matched with the last 4 digits of the Aadhaar linked to the customer’s bank account
NPCI’s central systems will perform validations to only ensure that the E-Mandates are technically correct. The responsibility for validating the digital certificates and cross-checking the signed content against the data will both fall on the bank.
Both eSign and e-Mandates come with huge benefits for banks, they are cost-effective, quick, digital, and automated. So where should you start if you’re thinking of making use of E-sign & E-Mandate?
You’ve got to start with the best of course!
SignDesk’s eSign solution allows users to make use of Aadhaar-based authentication to sign documents and our NPCI-compliant E-Mandate solution allows quick and seamless automation.
The best eMandate & eSign products in the game is only a click of a button away! Book a demo with us now to learn more about how we can help you win more business.