What is API E-Mandate?
An application-programming interface (API) is a set of standards and programming guidelines for accessing a web-based software programme or web utility, allowing two apps to connect with one another.
An API mandate in this situation refers to Standing Instructions (SIs) submitted using an API for with the aid of an eMandate service provider. API eMandate allow businesses to collect any mandate-related data & transmit this information to the NPCI and then the destination bank from which amounts are debited.
In order to register eMandate, customers simply visit the sponsor’s website, preview & verify their mandate details, and verifying these details using either internet banking credentials or debit card credentials or aadhaar based. NPCI further emphasises that the customer is responsible for verifying the authenticity of all the mandate data they are ready to authenticate using the eMandate APIs. The consumer must select the authentication technique and approve the mandate using his or her information after giving consent in this regard.
SOFT-TECH Solutions provide Solution for API based eMandate for destination bank using Aadhaar, Debit Card and net banking. API based eMandate is a payment service initiated by RBI and the National Payments Corporation of India (NPCI). It provides the underlying infrastructure for businesses to collect recurring payments in India. SOFT-TECH API based eMandate solution provide the platform for real-time verification of inward eMandate by Aadhaar Number, Debit card and Net Banking.
In a nutshell, here’s how to register mandates using an API e mandate
- The corporate organization makes an eMandate request
- SOFT-TECH SOLUTION’s collects the required information, which is then communicated with the NPCI – ONMAGS page
- The customer is invited to view these details & subsequently forwarded to the target bank after consenting
- For verification, the customer entered their, Aadhaar Card, debit card or Net banking information here.
- Based on authentication mode and input credential, if valid then the destination bank accepts or rejects the eMandate through SOFT-TECH interface.
End to End Process Flow (for Net Banking & Debit Card Authentication Modes)
The below diagram illustrates the functional flow of mandate authorization when Bank ID & Authentication Mode are passed from Merchant.
Objectives of eSign E-Mandate are
- Creation an authenticated mandate by the customer himself through electronic channels.
- Shorter mandate acceptance cycle or auto acceptance of mandates.
- Secured and assured mandate acceptance -mandates are initiated by the customer or his banker.
The system will leverage on Core-Banking Solution (CBS) of participating banks for initiation of mandates and posting of transactions. NPCI will be running the centralized services.
Benefits of API eMandate (eNACH) are
- Real-Time Verification
- Easy to use
- Higher success rate
- Regulatory certainty
- Easy to access.
- No need to visit branch
Aadhar Based API Mandate Authentication Flow
The below diagram illustrates the authentication flow of mandate authorization Aadhaar.
How does an API Mandate Work?
When the customer submits mandate approval using their banking credentials, the API Mandate functions. The process is carried out in the following way:
- The corporate organization first sends an e mandate request to SOFT-TECH SOLUTION who collect all the required mandate information.
- The client connects into the business’ website to view the specifics of the mandate.
- The customer must input their bank account number if they decide to accept the requirement. The business might additionally give customers the choice of bank account and authentication method. The business must make sure that the mentioned banks are ONMAGS registered with the NPCI.
- The customer is then taken to the NPCI page, where they can select net banking or Debit card authentication as their method of authentication.
- Following the choice, the NPCI ONMAGS interface will display a list of banks that have registered for the chosen authentication mechanism. The option will be pre-filled if the consumer has already selected it on the business website.
- The customer is subsequently forwarded to the relevant bank’s authentication page, where they can use the earlier-chosen alternative to authenticate the mandate.
- The bank verifies that the account number provided on the website of the company corresponds to the account number used by the user to authenticate the login.
- The customer then has the choice to accept or reject the mandate once the bank has displayed a summary of it.
- After making a choice, the customer will be taken back to the NPCI ONMAGS interface and then to the business’ website, where the approval status of the Mandate will be shown.
- An API mandate is executed in this manner. The NPCI further emphasises that the customer is responsible for verifying the authenticity of all the mandate data they are ready to authenticate using the eMandate APIs. The consumer must select the authentication technique and approve the mandate using his or her information after giving consent in this regard.
