Over time, financial systems have become more complex, which has made financial transparency more important than ever. It promotes fairness in financial dealings by providing customers with clear and accessible information about financial products, services, terms, and conditions. Also, such transparency allows customers to compare different financial options and choose the best one for their needs and preferences. Ultimately, this enhances customer satisfaction and helps them make informed choices.
An important aspect of financial transparency is eNACH. This service automates electronic payments and ensures that transactions are secure and transparent. Furthermore, these efforts are enhanced by documents like NOCs (no-objection certificates) and NDCs (no-dues certificates) that offer legal protection to consumers.
Bajaj Finserv, a diversified non-banking finance company, enables its customers to easily authorise e-mandates and provides a simple way to download NOCs and NDCs. Let’s understand the concept of financial transparency in detail and learn how you can set up an e-mandate for Bajaj Finserv. Also, we will see some simple steps, following which you can download your NOCs and NDCs from the Bajaj Finserv customer portal (My Account).
What do you mean by financial transparency
Financial transparency means having clear and easily accessible information about:
- Financial transactions
- Products, and
- Services
It ensures that all financial dealings are open and customers can see exactly what they are getting into. Such transparency builds trust. Customers can see the full picture and make better decisions without hidden surprises.
Some major benefits of financial transparency for customers are:
- Customers can hold institutions accountable for their actions and performance when they have access to clear disclosures.
- Customers understand how their money is managed and what are the various costs involved.
- Transparent information allows customers to compare different financial products and services effectively. This helps them find the best options that suit their needs and preferences.
Bajaj Finserv is committed to financial transparency. It allows its customers to initiate an e-mandate so they can easily manage their recurring financial commitments. Additionally, Bajaj Finserv customers can download essential documents like NOCs and NDCs to safeguard themselves from future claims.
How does eNACH ensure financial transparency
eNACH (Electronic National Automated Clearing House) is a digital mechanism developed by the National Payments Corporation of India (NPCI). It automates recurring payments directly from a customer’s bank account. Some common applications of eNACH are:
- Loan EMIs
- Insurance premiums
- Utility bills, such as electricity and water bills
- Subscription services
To get greater clarity, let’s learn how eNACH works:
- The customer provides a one-time authorisation to automate debits from their bank account.
- The authorisation is verified through an e-mandate. For those unaware, e-mandates are digital authorisations to make or collect recurring payments.
- Once the mandate is approved, eNACH facilitates the scheduled, automatic transfer of funds.
Automation through eNACH improves financial transparency by simplifying and automating recurring payments. This ensures payments are made accurately and on time without manual errors or delays. Also, such automation keeps financial records clear and consistent, making it easier for customers and service providers to track and verify transactions.
Furthermore, eNACH ensures that payments are made reliably and on schedule, eliminating the risk of late fees or service interruptions. Setting up eNACH and authorising lenders for e-mandates is a simple process that includes minimal paperwork. Once the e-mandates are in place, almost zero customer intervention is required to make the payments.
How to register for eNACH mandate on Bajaj Finserv
To register for the eNACH mandate with Bajaj Finserv, follow these steps:
- Access the Bajaj Finserv customer portal using your login credentials.
- In the main menu, find and select the option for mandates and documents.
- Choose the specific loan account for which you need to update the mandate.
- Enter your new bank account details from where the recurring payments will be debited.
- Decide on the method for registering your mandate: either through debit card or net banking.
- Once selected, you will be redirected to the Digio page. Here, you can select your preferred registration mode.
- After this, read the disclaimers and submit the form.
- To complete the registration process, you will be redirected to your bank’s website to authenticate the mandate.
- Now, depending on your chosen method, follow this process:
- For net banking: Log in with your net banking details and authenticate using the OTP sent to your phone.
- For debit cards: Enter your debit card details and authenticate using the OTP sent to your phone.
- After successful authentication, your bank will process and approve the mandate.
- Once approved, you can check the status of your eNACH mandate through ‘My Account’.
Furthermore, if you need to cancel the mandate before it expires, you can contact your bank directly. Alternatively, the concerned organisation can submit a cancellation form on your behalf.
How do NOCs and NDCs promote financial transparency
Firstly, let’s understand the meaning of both these terms. A no-objection certificate (NOC) relates to loans, such as home loans and car loans. It signifies that the borrower has fulfilled all the obligations of the loan agreement (say repayment of the principal amount and interest), and hence, the lender has no objections to releasing the collateral or removing any lien on the borrower’s assets.
For borrowers, it provides legal proof of loan closure and safeguards them from future claims. Also, a cleared NOC helps improve the credit score, as it indicates responsible credit behaviour.
On the other hand, a no-dues certificate (NDC) confirms there are no outstanding dues against the borrower’s account. Obtaining this certificate is crucial for the following reasons:
- Financial transactions
- Property sales, and
- Transferring ownership of assets.
Both NOCs and NDCs play an important role in boosting financial transparency. They provide definitive proof that all financial obligations have been met. Bajaj Finserv promptly issues NOCs and NDCs upon full repayment of the loan and clearing other dues, if any. This issuance eliminates the scope of any hidden dues or unresolved claims.
How to download NOCs and NDCs from Bajaj Finserv
You can download both NOCs and NDCs from the Bajaj Finserv customer portal (My Account) by following these simple steps:
- Visit the Bajaj Finserv website and log in to “My Account” by clicking on ‘Sign-in’.
- Enter your registered mobile number and submit the OTP received on your phone.
- Confirm your identity by providing your date of birth.
- Choose the loan account for which you need the NOC or NDC from the “My Relations” section.
- Next, click “View Statement” under the “Quick Actions” section.
- For NOCs: Locate the “No Objection Certificate” and download it.
- For NDCs: Find the “No Dues Certificate” from the list of documents and download it.
Conclusion
Financial transparency builds trust between customers and financial institutions. It allows them to have clear and accessible information about financial products, services, terms, and conditions. eNACH further enhances this transparency by automating recurring payments. Such automation leads to minimum human errors and promotes consistency. Additionally, important documents like no-objection certificates (NOCs) and no-dues certificates (NDCs) also boost transparency by confirming that all financial obligations have been met.
Bajaj Finserv customers can easily set up e-mandates through the “My Account” customer portal. They can also download NOCs and NDCs from the same portal by following a few simple steps. This way, customers can ensure payments are accurately made on time without any delays and that no outstanding dues are pending against the recently closed loan account.
*Terms and conditions apply.