Documentation

ASBA

Introduction

  • UPI Block or ASBA (applications supported by blocking of assets) enables merchants to create a mandate that creates a fund-block on end-customer’s bank account for subsequent debits.

  • Applications Supported by Blocked Amount (ASBA) with UPI Block Facility offers a streamlined, secure, and efficient payment collection system for merchants, particularly beneficial for Clearing Corporations (CC) in the financial sector.

  • This innovative system allows merchants to collect payments through automated debits from a pre-blocked amount in the customer's bank account, authorized via UPI PIN. This solution is particularly valuable for financial institutions, stock exchanges, and large-scale merchants dealing with high-volume, time-sensitive transactions.

Pre-Requisites

  1. Merchant account must be created with the help of RM.
  2. Merchant must have the test credentials of UAT & Production environment.

    Note*- Production credentials will be received via e-mail post UAT.

  3. Merchant transaction Domain and IP address must be whitelisted by sharing the details via e-mail to the dedicated Integration support personnel.

Features

Debit

  • CC will calculate settlement obligations separately for direct clearing clients. This will include statutory duties of STT and stamp duty but will exclude commercial charges such as brokerage or exchange fees. CC will debit the block towards settlement obligations of the client.
  • The debit shall be once in a day (based on the obligations of the client).
  • The amount debited will be received in CC’s account and information regarding the debit will be provided to CC, CM (Clearing Member), TM (Trading Member).
  • In case of any shortfall, the obligation will devolve on the CM.
  • Settlement of brokerage or such other non-statutory dues will be outside the CC’s settlement framework and TM/CM will not have recourse to the block created in favor of CC for such dues.

Release of Block

  • The release request will be received by the CC through TM and CM.

  • In case the CC does not have any residual claim, the CC will release the block, which will unfreeze the amount in the client’s bank account.

  • Information regarding the release will be provided to CC, CM, TM.

    Key Features

  1. Clients create a block in their bank account, supporting multiple debits.
  2. The block will be created in the name of the Clearing Corporation (CC)’s name and only the CC will have the right to debit.
  3. Information of the parties involved shall be captured in the flow.
  4. CC shall be passing the relevant information to the intermediates.

Process Flow

1. Mandate Creation

The below is the general process for mandate creation:

This is a merchant-initiated call for the creation of a mandate request, leading to mandate registration at NPCI post customer authorization of the request on the VPA-associated PSP app. Below is the process of mandate registration:

  1. Customer will initiate the checkout process from the merchant website.
  2. Merchant will display the payment option as ‘UPI Mandate’ to the consumer.
  3. Consumer selects ‘UPI Mandate’ option and provides the valid VPA.
  4. Merchant sets the frequency, validity period, etc., based on the product type (SIPs / MFs).
  5. Merchant will initiate the ‘Create Mandate’ API request to NDPS.
  6. NDPS will validate the API request parameters.
  7. NDPS will save the input details and provide the Intent String in response to the merchant.
  8. On executing the URL, the customer will be redirected to the VPA-associated PSP/bank application.
  9. Customer approves the mandate on the PSP / Bank APP.
  10. UMN is generated at NPCI and is sent to the PSP app in response.
  11. On successful mandate creation, NPCI posts the mandate information to ICCL.
  12. ICCL saves the mandate information and forwards it to the broker merchant.
  13. Broker merchant saves the mandate information and triggers a callback to NDPS using the ‘Callback API’.
  14. Mandate creation information is stored at NDPS.

Key attributes with respect to mandate creation

  • Frequency

    • Frequency of payments can only be "AS", corresponding to ‘as presented’.

  • Revokable

    • It gives the payer the authority to revoke the mandate.
    • In recurring mandates, it’s mandatory to give the customer the right to revoke the mandate, thereby the value will be “Y”.

  • Block Fund

    • It gives the payee the authority to block the funds.
    • Value is “Y” since funds must be blocked.

  • Validity

    • Merchant must establish and declare the start and end date, denoting the validity of the mandate. It is suggested to keep the ‘validityStartDate’ as the date of creation of the mandate.

  • UMN

    • It’s a unique alphanumeric code that specifies all mandate-related information.
    • UMN format: umn@psp
    • Length of 32 digits should be before @ and the total length of the UMN address can be a maximum of 70 digits.
    • E.g., 130a977ccabb11e7abc4cec278b6b50a@okhdfc
    • End users can view all mandates in the “My Mandates” option of the PSP application.

2. Callback API

Merchant will be posting the mandate details using this webhook post mandate creation. Callback URL for Mandate will be provided at the time of integration for activation of service.