Mandates

Overview

Decentro helps platforms collect payments periodically, be it daily, weekly, monthly, or even yearly, to reduce dependency on human intervention. It also helps platforms mitigate risks due to a payer defaulting on a payment, etc., and reduce dependency on the payer for transferring or approving funds transfer for each transaction.

This recurring payments stack, the mandate stack, broadly encompasses the below capabilities.

• ENACH: this is the electronic version of the recurring payments stack built on the NACH platform. ENACH allows platforms to set up mandates of higher amounts with multiple modes, such as Netbanking, debit cards, Aadhaar-based e-sign, etc.
• UPI Auto-pay: this is the recurring payments stack built on the UPI stack. UPI Auto-pay or UPI 2.0, as it is known, allows platforms to set up mandates seamlessly using the collect or intent flow on an app or website for smaller amounts.

Decentro powers both the capabilities on its own RBI approved PA Escrow account or directly on the platform's bank account as a technology partner.

Decentro's mandates stack powers the below use-cases for platforms to leverage.

• EMI repayments: this allows lenders like LSPs, NBFCs, SFBs, and even banks to leverage the stack to collect EMIs from borrowers through the NACH or UPI mandates stack.
• Insurance premiums: this allows platforms like insurtechs, life and general insurers to leverage the stack to collect premiums from borrowers through the NACH or UPI mandates stack.
• Investment use-cases: this allows investment platforms like Fintechs, RIAs, and even AMCs to leverage the stack to collect EMIs from borrowers through the NACH or UPI mandates stack.
• Subscription use-cases: this allows platforms, like consumer internet platforms, ECOM and even offline platforms to leverage the stack to collect EMIs from borrowers through the NACH or UPI mandates stack.

Flow

Decentro's mandates stack has largely 3 legs or steps in the flow.

• Mandate Registration: this step involves the payer setting up a mandate on the ENACH or UPI stack and consenting to the mandate terms like amount, tenure, frequency, etc. Note that this doesn't debit the funds from the payer's account.
• Pre-debit notification: this step involves the payee/platform letting Decentro and the payer know the presentation date and amount well before the debit date. Note that this doesn't debit the funds from the payer's account.
• Mandate Execution: this step involves the payee/platform letting Decentro the amount to be debited on a specific date from the registered account. At this stage, the payer's bank account is debited for the amount presented for execution.