Mandate is collected from the customers by the utility companies, banks/ financial institutions receiving periodic /repetitive payments towards electricity bills, telephone /mobile bills/ loan instalments/insurance premium/ Mutual Fund (SIP), etc. to directly debit their bank accounts. The mandate contains the details such as name of the customer, Utility code of the corporate/user company, account number, name of the bank/branch, IFSC/MICR code, period of transactions, type of transactions (monthly/qrtrly/yrly etc.).
- The user company provides the mandates where in all the required details are filled with the customer signature (as per bank account maintained with the destination bank) to the Sponsor Bank.
- After due validation of the data, the Sponsor bank will process the same and arrive at the NPCI. NPCI then shares the mandates with the respective destination banks (banks where the customer accounts are maintained)
- Destination bank then verifies the mandate details against their CBS system and responds to the NPCI within the stipulated time.
- On receiving the response from the sponsor bank, NPCI shares the same response to the destination bank along with a unique number for each of the mandate which is called, Unique reference mandate number (UMRN).
- If the response received from the sponsor bank is positive, destination bank will process the transaction provided by the user company.