Kotak Mahindra Bank has announced the launch of an industry-first debit card-based authentication solution on NPCI’s e-Mandate API platform.
Kotak becomes the first Destination Bank to go live with Net Banking and Debit Card-based e-mandate authentication, the bank said in a statement adding that the capability will enable its customers to create electronic mandates (similar to the erstwhile eNACH with Aadhaar + OTP) via both the Debit Card and Net Banking channels.
This allows Kotak to go live as a sponsor or acquirer bank for corporates and merchants seeking recurring payments.
Deepak Sharma, Chief Digital Officer, Kotak Mahindra Bank said, “API based e-mandates are consumer-friendly, fast, frictionless and paperless. With the introduction of debit card-led authentication to the existing net banking route, we continue to make life simpler and easier for our customers.”
In a first-of-its-kind initiative in the industry, customers can register both physical and e-mandates on a single platform with validation on the mandate fields to remove rejections on account of various reasons. E-Mandates have a number of advantages over physical mandates, most notably in terms of security, costing, operational efficiency and turnaround time, Shekhar Bhandari, Senior EVP and Business Head - Global Transaction Services, Kotak Mahindra Bank said.