Onboarding Bank
Introduction
The DDRX platform facilitates the onboarding of bank through administrator login. Upon submitting the bank details on the platform, the details are automatically forwarded to the checker for verification. Once the details are verified and approved, the bank gets successfully onboarded on the platform. This section walks you through the process of adding a bank in the platform.
Note
Only a platform admin can onboard a bank.
A checker approval is needed to successfully onboard a bank.
Steps to onboard a bank to the DDRX platform
The following are the steps of onboarding a new bank to the DDRX platform as an admin. After filling in all the required bank information, click Submit button at the bottom of the page to complete onboarding the bank to the DDRX platform.
Note
Fields marked with an asterisk (*) are mandatory. All other fields are optional.
Go to DDRX platform.
Enter Email Address, Password, and captcha.
Click Login.
Go to Banks section.
Click Add New Bank. Enter the bank information as follows:
Bank Details
Bank Name - Enter the official name of the bank you are onboarding.
Bank Code - Enter the unique bank code assigned to the bank.
Contact Information
Contact Person Name - Enter the name of the primary contact person at the bank.
Branch Name - Specify the branch name of the bank you are onboarding.
Account Number - Enter the bank account number associated with the DDRX platform.
IFSC Code - Provide the Indian Financial System Code (IFSC) of the bank account.
CIN - Enter the bank’s Company Identification Number (CIN).
Financial Details
Financier Type - Select the appropriate financier type from the dropdown menu. The menu includes options, such as Bank and NBFC.
Bank Preferences & Address
Bid Preference Type - Choose the bank’s preferred method for receiving bid requests. The method includes options, such as Auto and Manual.
Address - Enter the complete address of the bank branch.
Week Off - Specify the bank’s preferred weekly off day.
Payment Mode - Select the bank’s preferred payment mode. The payment mode includes options, such as Direct and Escrow. To understand the difference between direct and escrow payment mode, refer to the following table.
Feature | Direct Payment Mode | Escrow Payment Mode |
Definition | In direct payment mode, the payment is made directly from the buyer to the supplier without the involvement of a third-party intermediary. | In escrow payment mode, the payment is held by a trusted third-party (escrow agent) until the transaction between the buyer and the supplier is completed and both parties fulfill their obligations. |
Involvement | Only involves the buyer and the supplier. | Involves the buyer, supplier, and a third-party escrow agent. |
Payment Security | Generally offers less security compared to escrow as there is no third-party involvement to oversee the transaction and mitigate risks. | Offers higher security as the payment is held by the escrow agent until both parties fulfill their obligations, reducing the risk of fraud or non-payment. |
Dispute Resolution | Disputes need to be resolved directly between the buyer and supplier, which can sometimes be challenging and may result in legal proceedings. | Disputes can be resolved through the escrow agent, who acts as a neutral third party and can help mediate disputes and release funds accordingly based on the agreement terms. |
Common Use Cases | Commonly used for regular transactions where there is a high level of trust between the buyer and supplier, such as retail purchases or services rendered. | Often used for high-value transactions, real estate transactions, or transactions where there is a lack of trust between the buyer and supplier, as it provides an added layer of security. |
Contact Designation & Instruction File Type
Contact Designation - Enter the contact person’s designation at the bank. For example, Manager, Relationship Manager, and so on.
Instruction File Type - Choose the file type the bank uses for receiving instructions. The file type includes options, such as Excel and TXT.
FTP Details
FTP Id - Enter the bank’s File Transfer Protocol (FTP) ID if applicable.
FTP Directory - Add the specific directory within the bank’s FTP server for file uploads.
FTP Password - Provide the password for the bank’s FTP account if applicable.
FTP URL - Enter the bank’s FTP URL if applicable.
Email Recipients
Enter the email addresses of any additional recipients who must receive copies of communication. Use comma-separated values to add multiple email addresses.
Acknowledgement File Directory
Specify the directory within the bank’s S3 bucket if applicable for storing acknowledgment files.
Cut Off Time
Payment Cut Off Time - Set a cut-off time for processing payments on the platform. The transactions initiated after this time may not be processed until the next business day. The accepted time format is either HH:MM AM or HH:MM PM. For example, 06:30 PM.
NEFT Cut Off Time - Set a cut-off time for NEFT payments on the platform. The transactions initiated after this time may not be processed until the next business day.
Generate Legal Docs
Choose Yes to automatically generate legal documents which are used to take vendor's consent on behalf of the bank. The legal documents can be Service Level Agreement (SLA), Terms & Conditions, and so on.
Otherwise, choose No to get legal documents from the bank and upload in the platform.
Image Upload
Click Choose File to select an image logo or icon to represent the bank on the platform.
Click Upload. Upon clicking this button, the image gets uploaded successfully.
Manage MCLR Rates
What is MCLR?
Marginal Cost of Funds based Lending Rate (MCLR) is the minimum lending rate below which a bank is not permitted to lend. MCLR replaced the earlier base rate system to determine the lending rates for commercial banks.
RBI implemented MCLR on 1 April 2016 to determine rates of interests for loans. The MCLR is an internal reference rate for banks to determine the interest they can levy on loans. For this, they take into account the additional or incremental cost of arranging an additional rupee for a prospective buyer.
Info
Learn more about MCLR Rates.
Configuring MCLR Rates
Click Manage MCLR Rates to add or manage MCLR rates applicable to the bank entity.
Select the desired start date from which the rates become effective.
Click Edit.
Enter the Benchmark Rate % as needed for each corresponding Benchmark Tenure.
Click Save.
In this way, the MCLR rates have been configured successfully.
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