A mandate is collected from the customers by the utility companies, banks/ financial institutions receiving periodic /repetitive payments towards electricity bills, telephone /mobile bills/ loan installments/insurance
premium/ Mutual Fund (SIP), etc to directly debit their bank accounts. The mandate contains the details such as name of the customer, account number, name of the
bank/branch, MICR code, etc
- The user company prepares a transaction data based on the details provided in the mandate and the same is shared with the Sponsor bank in an encrypted form to further submit to the Local Clearing House of the Sponsor
- After due validation of the data, the local clearing house processes the same and arrives at the inter-bank settlement as also generates bank-wise/branch-wise reports (hard copies).
- NCC debits the destination banks? accounts with clearing house and simultaneously affords a consolidated credit to the sponsor bank?s account and furnishes the bank-wise and branch-wise reports to the service branches
of destination banks.
- Service branches forward the branch-wise reports to the respective branches for debiting the accounts of customers with the indicated amounts.