MANDATE MANAGEMENT
Standard Operating Procedure
Banking Operations Department
Corporate Office, Chennai
SOP for Mandate Management
This SOP supersedes and replaces the earlier SOPs. This document is the
property of Indian Bank, and may not be reproduced or copied, in any form
or by any means, in whole or in part, without prior permission of Indian
Bank.
Version Control
Version No. Prepared By Approved By Effective Date
1.0 Banking Operations Department GM/COO 01.04.2020
Changes During the Year:
Date of Issuance Circular No. Circular Name
Version: 1.0 Page 1 of 9 Version Date: 30.06.2020
SOP for Mandate Management
Table of Contents
Introduction: .................................................................................................................................. 3
Credit ECS` .................................................................................................................................... 3
Role of Branches: ...................................................................................................................... 3
Role of Service Branch Chennai: ........................................................................................... 4
Debit ECS ....................................................................................................................................... 5
Role of Service Branch, Chennai: .......................................................................................... 5
Annexure – A ................................................................................................................................. 6
Annexure-B .................................................................................................................................... 7
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SOP for Mandate Management
Introduction:
National Automated Clearing House (NACH) by National Payments Corporation of
India (NPCI) introduced for Banks, Financial Institutions, Corporates and
Government is a web based solution to facilitate interbank, high volume, electronic
transactions which are repetitive and periodic in nature. Mandate Management
System (MMS) is a service of NACH debit which facilitates the process of Mandate
creation, amendment and cancellation and offers all MIS related to the mandate.
Benefits of NACH debit are as follows:
Standardization and digitization of mandates allowing complete audit trail of
the Mandate lifecycle.
Simplification of the mandate acceptance and recording process. Will result
in reduced operational cost for the banks and its clients.
Results in higher revenues for the banks and its clients as the scope of
services expand pan India - beyond the 90 clearing centres.
Unique identifier number allocated to each mandate (UMRN – Unique
Mandate Reference Number).
Secure web access for file upload/download, dissuading the concept of
regional NCC/Clearing House submissions.
Mandates can be processed by the member for any branch across the
country. Allows corporate clients to directly upload files for approval (DCA).
Functions on International Messaging Standard - ISO 20022.
Minimal time taken to activate the Mandate – same day processing possible.
Corporates get to have direct access to the NACH systems, making it easier
for them to get access to status of transaction/mandate without delay.
Reduction of the uploading work to the sponsor banks, since the file upload
will be done by the corporates themselves
Service Branch, Chennai is nominated as Nodal Branch for processing the Mandates
received through all our branches.
Credit ECS (Debit other bank accounts and receive credit for accounts with us)
Role of Branches:
Customer has to fill up the mandate form (Annexure – A) as prescribed by
NPCI.
Branches have to verify all the details provided by the customer along with
signature and accept three copies of the mandate forms.
Branches should enter the data in the CBS menu (Annexure-B). On transmit, a
queue will be generated.
On passing the queue, CBS system will generate the Bank Unique Reference
Number (BURN), which should be noted in all the three copies of the mandate
forms.
Branches have to handover first copy to the customer and retain the other copy
in their record.
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SOP for Mandate Management
Third copy of the Mandate form must be sent to Service Branch Chennai for
scanning.
All the Mandates accepted by the destination banks will be provided with a
Unique Mandate Reference Number (UMRN), which has to be noted in the Mandate
copy retained by the branch after verifying the “Report of Accepted Mandate”.
Branches have to obtain the fresh mandate from the customers for all the
rejected/non-accepted mandates and present it again as like as new mandate.
Role of Service Branch Chennai:
The mandates received from the branches are to be scanned using the in-house
software. The details of mandate will be displayed after entering the Bank Unique
Reference Number(BURN) available in the mandate received from branches.
After verifying the correctness of image and data entered by the branches in
CBS, the mandate has to be authorized in the in-house software.
Incomplete mandate forms need not be processed. The particular record is to be
rejected.
Consolidated data file of Mandates entered by all the branches, will be
generated in CBS and pushed to the reports folder during EOD, which has to be
uploaded in the in-house software on a daily basis. The in-house software will
match the data with the scanned images.
A file is to be generated in the in-house software for all the successful matched
Mandates and the same is to be uploaded in NPCI site on a daily basis.
Acceptance file received from NPCI contains the Unique Mandate Reference
Number (UMRN) in addition to the BURN number for each mandate.
Acceptance file received from NPCI is to be loaded in the in-house software then
and there.
A file is to be generated in the in-house software for all accepted mandates and
the same is to be uploaded in CBS system for updating the UMRN.
Reports of both accepted/rejected mandates with NPCI will be pushed to the
branches in their respective reports folder.
Branches have to monitor the reports and re-register the pending mandates
once again after confirming the correctness of the details with the concerned
customer.
Branch wise report of all the mandates accepted by other banks and active
mandates will be pushed to all the branches at the end of every month.
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SOP for Mandate Management
Debit ECS (Debit the accounts with us and credit to other banks)
Role of Service Branch, Chennai:
Mandate file received from NPCI (Mandates received at other banks) for
acceptance will be uploaded in the in-house package on a daily basis.
Account Number, Name, Signature and other details displayed in the in-house
software are to be verified with the details available in the image.
After authorization, a file is to be generated for the accepted records and
uploaded in CBS.
CBS will register the debit mandates in the system based on the above file.
Success / Error file will be generated in the CBS which is to be uploaded in the
in-house package.
Acceptance file is to be generated in the in-house software and the same is to
be uploaded in the NPCI site.
Report of accepted mandates to debit our customer’s accounts will be pushed to
the branches on a daily basis in their reports folder.
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SOP for Mandate Management
Annexure – A
The mandate forms are to be procured from CO: Stationary Department
through Online Indent Portal.
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SOP for Mandate Management
Annexure-B
CBS Screen Shots of NACH Mandate Management System
Mandate Entry at IB Branches:
Step 1: Click Mandate Management > Mandate Registration
Step 2: In Mandate Registration Screen: Under Action select C: Create and click on
Transmit Button.
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SOP for Mandate Management
Step 3: In the next screen, fill up the following details:
a) Instrument Number (Printed on Mandate)
b) Account Number which will be credited (IB Account No.)
c) Destination Bank debit account details
d) Customer details
and click on Transmit button. A queue will be generated.
Step 4: On authorizing the queue BURN will be generated which has to be noted in the
mandate.
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After authorisation of the queue the present home branch can transfer the account
through Dep CC/OD menu and transfer the Home branch of the CIF also.
The same procedure is to be followed for home branch transfer of loan
accounts.
Mandate Management System -> Mandate Registrator (SCR:002789 :
Mandate Details)
Debit ECS Mandate creation
Debit ECS (Debit the accounts with us and credit to other banks)
ENTER Our bank debit account detail
Destination bank credit account details
Customer details and click transmit.
The generated queue is authorized.
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