Different banks have different policies for business customers authorising NACH Debit eMandates.
Where the customer ('mandate debtor') is a business too, eMandate authentication may be possible in some cases. If eMandate is not feasible, the alternative is to take a physical mandate.
- eMandate authentication via net-banking: Destination banks have connected their retail net-banking websites. Therefore, it is not possible for a customer who is using corporate net-banking to authorise an eMandate. Many destination banks classify proprietorships and small and medium sized businesses as retail customers and thus give them access to retail net-banking.
- eMandate authentication via debit card: Destination banks have connected a custom debit card page or an existing debit card checkout method. However, having a debit card does not guarantee that eMandate can be authenticated.
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'.
- Validating whether the bank account is a current account or a savings account.
Therefore having a debit card or having retail net-banking login does not guarantee that eMandate can be authenticated.
Customer entity types:
- Proprietorships: eMandate is generally feasible.
- Partnerships: eMandate may be feasible for some destination banks.
- Private limited: eMandate may be feasible for some destination banks.
- Public limited: eMandate is not feasible.