India’s Subsidy disbursement engine – NPCI ACH-APB


The first set of subsidy disbursements are getting routed through the NPCI ACH-APB mode.   The LPG Subsidy disbursements are routed through the beneficiaries’ ‘Aadhaar Number’. The ‘Aadhaar Number’, is the common link between the LPG companies and the Banks.

Over the last few months, there has been a steady increase of LPG subsidy transactions.

 

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The Banks have to seed the Aadhaar numbers in the customer’s banks accounts, and share such Aadhaar numbers with NPCI.

Based on the mapping done in the NPCI Aadhaar Mapper, the transactions are routed to the destination bank.  Destination banks based on the Account Number-Aadhaar number mapping, route the funds to the respective destination account.

The return file sent to NPCI should invariably contain the Beneficiaries’ Account Holder Name and Beneficiaries’ Account Number.  This is a vital requirement for Subsidy disbursement departments to answer any queries. The information is important from a risk-angle too.

At the launch of ACH-APBS, the guidelines clearly mentioned that the return file should contain the Beneficiaries’ Account Holder Name and Beneficiaries’ Account Number. However, still 30% of the transactions do not contain the requisite data.

NPCI has made it mandatory that the two fields are included in the APB Return file w.e.f November 11, 2013.

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