API eMandate for business customers

Different destination banks have different policies for business customers authorising NACH Debit API eMandates.

Where the customer ('mandate debtor') is a business too, API eMandate authentication may be possible in some cases. If API eMandate is not feasible, the alternative is to take a physical mandate.

• Net-banking auth mode: Destination banks have mostly connected their retail net-banking websites. Therefore, it is not usually possible for a customer who is using corporate net-banking to authorise an API eMandate. Many destination banks classify proprietorships and small and medium sized businesses as retail customers and thus give them access to retail net-banking. Some destination banks have given an option for the customer to redirect to the corporate internet banking login, but even that can still have other validations e.g. maker-checker, or transaction rights.

• Debit card auth mode: Many destination banks have connected the NPCI debit card page, whilst others have connected a custom debit card page or an existing debit card checkout method. However, having a debit card does not guarantee that API eMandate can be authenticated.

• Aadhaar auth mode: Destination banks generally allow this auth mode for retail customers only.

Other than authentication, destination banks may apply further validations for accepting an eMandate:

• Validating entity type e.g. proprietorship or company.

• Validating whether the user has transaction rights.

• Validating mode of operation i.e. singly, such as 'Either or Survivor' or 'Any or Survivor', or maker-checker. If the account has maker-checker, then API eMandate authorisation is not possible.

• Validating whether the bank account type is a current account, savings account, overdraft account, cash credit account. Most destination banks do not accept API eMandate for cash credit and overdraft accounts.

Therefore having a debit card or having retail net-banking login does not guarantee that API eMandate can be authorised.

Customer entity types:

• Proprietorships: API eMandate is generally feasible.

• Partnerships: API eMandate may be feasible for some destination banks.

• Private limited: API eMandate may be feasible for some destination banks.

• Public limited: API eMandate is not feasible.

Destination banks

We have collated below a list of some destination banks and their policies.

• Canara Bank - permits current account.

• ICICI Bank - permits customer to select Corporate Internet Banking for net-banking auth mode.