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With a view to further deepening the adoption of digital payments in the country, NPCI has brought in a new circular. The circular requests the banks to enable onboarding of customers for the e-Mandate registration by authentication through their Aadhaar cards and OTP (one-time password).

The existing mechanism allowed e-Mandate registration only to the customers with internet banking and debit cards facility. The new NPCI circular says that the decision of extending the authentication mechanism to Aadhaar number and OTP based authentication is taken to make the e-Mandate variant available to the segment of the society that does not have access to the internet banking and debit card.

It further says that, for the e-Mandate registration authentication, the customer will be authenticated first using Aadhaar+ OTP through UIDAI. On successful authentication, the mandate registration request will be routed to the bank with additional tag of Aadhaar number. It is the duty of the bank to verify whether the Aadhaar is linked to the account number provided in the request. If Aadhaar is linked, the banks will send the OTP to the registered mobile number of the customer. On successful verification of OTP, mandate will be registered.

NPCI has requested all the Member banks to take note of it and disseminate the details to all who are concerned. It is also requested to the banks and other financial institutions to start the development process as per the specification provided to get the new customers on boarded.

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