NPCI through circular dt July 19, 2017
has strictly advised all member banks participating in NACH Mandate Management System
to adhere to laid down procedures while processing mandates.
Mandate Management System is in
operation from 2013 and over the years, 2.71 crores mandates have been added to
the MMS repository.
It was brought to the notice of NPCI
that some of the member banks had started formulating their own rules for
acceptance of mandates. Such non-standardised processes by banks have led to confusion
in the participants of NACH eco-system.
Hence, NPCI to restore order in the NACH
eco-system has advised Banks to strictly follow the laid-down procedures while
processing the mandates.
However NPCI is open to suggestions
and has advised member banks to put forth any process improvement points to the
Steering committee. The process improvements points will be deliberated at the
Steering committee and further action will be planned.
Yes, non-members too can put their
points to the Steering Committee. This is a welcome step by NPCI
QUOTE
Mandate Management
System (MMS) is an essential part of National Automated Clearing House (NACH)
service. The Mandates are necessary from the regulatory National Automated
Clearing House perspective in order to process NACH transactions.
As a step towards
streamlining the process and making it more customer and participant -friendly,
it is proposed to implement the MMS, where mandate information is captured on a
standard cheque like mandate form.
UNQUOTE
