UPI Collections

The FAQs in this sub-section pertain to the UPI Collections module

1. Who can use UPI for collections?

Any Indian business entity can use UPI to facilitate ad-hoc or one-time payments from its customers, vendors or any other player in their business ecosystem.

2. What are the benefits of using UPI for collections?

There are multiple benefits of UPI for collections like coverage across banks, ubiquitous knowledge from a customer perspective and more importantly, seamless customer experience

3. What are the primary use cases for UPI-based collections?

UPI-based collections are extremely convenient in powering use-cases like purchases, loan repayments, investments, and insurance premiums and offline use-cases like QR-based collections.

4. What is the customer journey for UPI-based collections?

UPI requires the payer to have UPI enabled on their mobile through a TPAP/PSP app like PhonePe, Google Pay, PayTm, etc. Payers can pay through any one of the below flows.

UPI Deep links where the payment can happen from a specific UPI app on their mobile
Generic payment link where the customer can choose the UPI app of their choice
Collection Request where the payment can be done from a UPI app of the payer's choice
QR-based payment through any preferred PSP app

5. Do all Remitter Banks support UPI?

Yes. All commercial banks in India support UPI. The payer must register their account on a UPI app and use it to pay merchants offline or online.

6. Can the UPI collections stack be set up on a platform's business account/s?

Yes. Decentro can power UPI collections on a current or a similar business account where Decentro already has integrations.

7. What is the maximum amount that can be collected via UPI?

The maximum amount that can be debited via a single presentation depends on the PSP handle and the remitter bank (where the payer has a bank account). Typically, most banks support UPI debits of at least 1,00,000 INR/day, with some supporting higher limits.

8. How are the funds settled to the beneficiary?

Decentro settles the funds to the registered beneficiary's bank account as per standard settlement cycles as agreed upon at the time of onboarding.

9. Does Decentro require a platform to use a virtual account for UPI collections as well?

Yes. Decentro uses the virtual account stack as a ledger account to maintain collections across different modes and transaction types at a single place. The platform can choose to create one or more virtual accounts and map the payment link to be generated against it.

10. Can the platform create the payer handle as per their naming convention?

Decentro follows a standard naming convention to be compliant with statutory guidelines set by NPCI (which regulates UPI) and its partner bank. Typically, the trade name or the legal name of the platform/merchant can be present in the handle.

11. Does Decentro provide SDKs for UPI collections?

Yes. Decentro has an SDK for UPI intent flow and collect requests that can be embedded in an app and used to collect using UPI.

12. Can a platform create payment links or collect requests using the Decentro dashboard?

Yes. Decentro has a readily available capability to generate payment links and collection requests through its dashboard which is shared post being onboarded.

13. How does the platform get to know the status of a UPI collection?

Decentro triggers a transaction status callback Transaction Status] to a pre-configured endpoint after the payment link/collect request is approved or rejected by the payer. In addition, Decentro also provides a Status Check] capability to check the status of a collection.

14. How do UPI deep links differ from generic payment links?

UPI deep links have a protocol for the key UPI apps which can be used by the platform to display the same on their app and the payer can choose to pay from a specific app. A generic payment link, however, allows the payer to choose the app of their choice to pay from.

15. What is the meaning if a payment link status is 'Pending'?

Decentro passes back the status of a collection as 'Pending' in the Check Payment Status API if the link or collect request is not authorized by the payer.

16. Does Decentro trigger a callback if the platform uses the Status check capability?

Decentro triggers a transaction status callback and account balance callback to the configured endpoints if a status check is done after the callback is triggered.

17. What is the minimum amount that can be collected via UPI?

The minimum amount to use UPI collections API is INR 5. Amounts less than INR 5 will not be supported either in the payment link or collection request.

The FAQs in this sub-section pertain to the ENACH capability of Decentro.

ENACH

1. Who can use NACH for payments?

Any Indian business entity can use NACH to facilitate recurring payments from its customers, vendors or any other player in their business ecosystem. This is in addition to regulated use cases like lending, investments, insurance, etc.

2. What are the benefits of using NACH for payments?

NACH-based payments are very convenient when you expect to collect payments frequently over a long period, either at specified intervals or Adhoc for specific scenarios. Customers do not need to approve a transaction every time, which reduces operational overheads and the risk of a payer not paying on time, etc.

3. What are the primary use cases for NACH-based payments?

NACH-based payments are extremely convenient for recurring payments like EMIs, subscriptions, expenses, etc. NACH settlement takes 1-2 working days but has higher amounts than UPI transactions. The payer cannot cancel, which is a major benefit in lending use cases.

4. What is the process flow for NACH-based payments?

NACH requires a customer (business or individual) to authorize a mandate digitally or physically once by providing bank account details. Once the registration is successful, the platform can collect payments into their account through Decentro's platform.

5. How can the NACH mandate be set up?

NACH mandates can be set up digitally if the customer’s bank supports either a Debit Card or Netbanking. Alternatively, the customer can authorize a mandate form offline by signing as per bank records. Decentro is also working to power the registration through Aadhaar-based e-sign.

6. What is the difference between physical and ENACH?

ENACH, also known as digital mandates, is done via API and facilitated fully digitally at the time of registration. On the other hand, physical NACH requires customers to sign the NACH form, which can be time-consuming, has much higher rejection rates, and requires considerable operational efforts.

7. What is the maximum amount that can be deducted via NACH?

The maximum amount that can be debited via a single presentation depends on the amount and the frequency of the mandate registered. However, multiple presentations can be done if the amount to be debited is higher than the registered amount.

ENACH supports maximum registration as well as debit up to 1CR.

8. Do all Banks support NACH?

NACH is supported by all the commercial banks that operate a payment system in India. The list of supported banks is here.

However, ENACH is supported by a specific set of banks ONLY. The list of banks live and at different stages of integration with NPCI can be found here.

9. What is the benefit of ENACH over physical NACH?

ENACH supports quick registration confirmation, does not require manual intervention like a physical NACH, and has much lower rejection rates than physical NACH due to issues like a signature mismatch. This is in addition to transaction limits of up to 1CR.

10. Does the platform need to create a new utility code?

The platform can create a new utility code through Decentro or move an existing utility code to Decentro. Decentro will help the platform with the process and ensure a smooth and seamless go-live from an operational and technical perspective.

Registration

1. Can the ENACH mandate be set up on business accounts?

Yes. Most banks that support ENACH allow registration where the current account is not a 2-FA account.

2. Does the platform need to open a new bank account for ENACH?

No. The platform can piggyback on Decentro’s PA escrow to collect payments, which is permissible per PA guidelines from RBI. However, if you prefer to have the collections done directly to your account, you must set up a bank account with the banking partners Decentro supports.

3. Can NACH registration fail for any reason?

Yes. ENACH registration can fail for many reasons, such as invalid account information, insufficient balance, blocked account, etc. This is in addition to scenarios like invalid netbanking credentials, debit card details, or an invalid OTP being entered.

Physical NACH registration primarily fails due to a signature mismatch between the mandate form and the bank account, insufficient funds, etc. In addition, physical NACH can also fail due to any beneficiary bank checks that are put in place by them.

5. What is the maximum period for which a NACH can be registered?

ENACH or even physical NACH can be registered for 40 years only. The platform needs to pass the end date in the request payload. The guidelines issued by NPCI on their website.

6. Is an end date mandatory for registration?

Yes. Remitters can no longer register a mandate as ‘Until Cancelled’ and must give a clear end date at the time of registration as per NPCI guidelines.

7. Is it possible to customize the mandate registration screen?

Decentro allows the platform to customize its UI template before redirecting to the NPCI portal, where actual bank account details are entered. Decentro, however, cannot customize the NPCI screen.

8. What is the maximum amount that can be deducted via NACH?

NACH supports registration up to 1CR.

9. In what ways can a payer register a mandate?

Decentro powers ENACH through the below modes of authentication.

Debit Card
Netbanking

Decentro is also working on the Aadhaar-based mandates, which will be rolled out shortly.

10.What does cancellation of a mandate mean?

Cancellation of a mandate results in the entire mandate being canceled and all subsequent presentations getting blocked. Cancellation can only be made by the payee, typically in lending-related usecases. Cancellation of a mandate cannot be undone, and the payer needs to register a new mandate.

11.What does amendment of a mandate mean?

Amendment of a mandate is done if there’s any change in the parameters like amount, frequency, date, etc. This is done in case there’s any change in the loan amount, tenure, etc. Amendment of a mandate requires the payer to go through the same experience as the registration flow.

11.What does the "Fixed" amount rule mean for mandates?

The "Fixed" amount rule means that the debit amount must be exactly the specified amount. The system will not allow debits that are more or less than this specified amount.

11.What does the "MAX" amount rule mean for mandates?

The "MAX" amount rule means that the debit amount can be less than or equal to the specified amount, but it cannot exceed the specified amount. This provides flexibility for debiting up to the specified limit.

Presentation

1. How do we handle Adhoc presentations using NACH?

NACH - physical or ENACH, allows the platform to set up payments with predefined frequency or Ad Hoc. By setting the frequency to Adhoc, the platform can present a mandate per the business requirements.

2. Can NACH facilitate instant settlements?

No. Unlike UPI or IMPS, NACH is designed to facilitate recurring payments of higher value. The payments take one working day to reflect in the credit account.

3. Can we present different amounts for each presentation?

Yes. Decentro allows the platform to present different amounts for each presentation if the mandate is registered with the amount type as 'Maximum.'

4. Can Decentro settle into any bank account after the presentation?

Decentro settles the funds to the relevant beneficiary based on the use case, which the platform will share before going live and after Decentro has approved the same after its due diligence.

5. Can Decentro settle to multiple bank accounts at an execution level?

Yes. Decentro allows the platform to settle funds into multiple bank accounts. However, this will be subject to the use cases and must comply with the guidelines.

6.Does the platform need to trigger any pre-debit notifications through Decentro?

No. ENACH/NACH requires the client to inform the payer of the debit at least 24 hours before the actual debit. This can be undertaken by the platform by communicating to the payer through SMS and/or email or any other standard modes of communication like Whatsapp or in-app notifications.