eMudhra which manages digital identity and transaction, announced the launch of Aadhaar eSign-based ‘National Automated Clearing House’ (NACH) gateway, for large and small enterprises to collect recurring payments from customers, helping slash costs and bring about accountability in payment processes.
National Automated Clearing House (NACH) is a certifying authority in India to issue digital signature certificates.
This solution aim to facilitate paperless electronic transactions which are repetitive and periodic in nature simplifying activation time for all parties. 95% of transaction related costs will now be slashed, making it one of the most comprehensive and time saving proposition for enterprises. The solution will also remove geographical barriers and bring about efficient banking for the Customers.
Supports Govt’s Digital India Vision
“eMudhra has been a pioneer in bringing new innovations to the market and fully supports the government’s Digital India vision. An eSign-based NACH is one such transformational initiative that is expected to drive huge cost savings to the ecosystem and promote the drive to move digital and cashless. We’re working with the NPCI and various central and state government bodies to help simplify payments and bring about digital inclusiveness. Our new offering is going to bring about huge cost savings and reduce massive complexities across multiple players,” eMudhra’s Chairman V. Srinivasan said.
As a market leader, eMudhra has been working with several banks in this transformational initiative and expects to handle over 25 to 30 million transactions in the next one year. In line with its thought leadership initiatives to support ‘Digital India’, the company wanted to enable large and small enterprises such as banks, financial institutions, insurance companies, mutual funds, fintech firms, etc. to collect recurring payment instructions from customers without the need for submitting physical forms and go paperless. Any such organization can avail this facility from eMudhra in less than 30 Minutes.
eMudhra’s Aadhaar e-sign digital payment system : how it work ?
Under eMudhra’s digital signature system, a customer can authenticate a payment process with a one-time password (OTP), which will be sent to the mobile number linked to his/her Aadhaar number, while initiating a purchase with recurring payments. An alternative to the OTP is the usage of the biometric fingerprint scanner.
AADHAAR eSign based NACH mandate will offer huge benefits in terms of legal non-repudiation, significantly lower costs and eliminate errors since the entire process is now digital.