The National Payments Corporation of India (NPCI) on August 16, 2023, issued a circular regarding the revision of mandate processing TAT with reference to circular No. 211 titled "Penalty for Mandates Exceeding Timelines."
It is stated that the process of mandate processing has been well-established over time and electronic mandates have witnessed significant growth, enabling end-to-end automation in processing, it has been decided to revise the TAT for processing the physical mandates.
The revision will occur in two phases:
• Phase 1: 7 working days - Effective from September 01, 2023.
o 0 to 7 days - Incentive of 25 per mandate.
o Beyond 7 days - the mandate will be expired - A penalty of 10 per mandate will be Levied.
• Phase II: 5 working days - Effective from December 01, 2023.
o 0 to 5 days - No penalties - An incentive of 25 per mandate.
o Beyond 5 days - mandate will be expired-A penalty of 10 per mandate will be levied.
All member banks are advised to take note of the revised TAT and make the necessary arrangements to comply with the revised processing timelines.
[Circular No. NPCI/2023-24/NACH/006]
