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Top Features of Nodal Account
Our dedicated team ensures smooth account opening and operations
Efficient monitoring with monthly audits and quarterly reporting
Streamlined processes and solutions ensure no undue delays in transferring funds
About Nodal Account
E-commerce, FinTech, EdTech, HealthTech marketplaces and aggregators have revolutionized the business module for both customers and vendors. But one of the most complex parts of such business processes is the smooth and efficient flow of funds between the two parties.
As per the RBI Nodal Account guidelines, a marketplace intermediary must have a nodal bank account to hold funds on customers’ and sellers’ behalf and safeguard the interests of all the parties involved. Our Nodal Account offers transparent and hassle-free disbursal of funds from different customers to various sellers and logistic partners following due process.
Features of an AU Small Finance Bank Nodal Account
- Transparency: At no point does the intermediary legally own the funds in the Nodal Account. This ensures that the funds are disbursed only to the registered beneficiaries.
- Security: The intermediary cannot exercise their control on the funds if they do not follow legal regulations. This takes care of any trust deficit that the customer or vendor may have.
- Faster payments: Streamlined processes and solutions ensure that the registered beneficiaries receive the funds with no undue delays.
- Support: Our dedicated team will ensure smooth account opening and operation.
- Audit checks: As per the RBI’s Nodal Account guidelines, monthly audits and quarterly reporting are required. This ensures that Nodal Accounts are efficiently monitored.
Q1. How does the AU Nodal Account work?
The Nodal Account is a short-term or makeshift vault of sorts to save and distribute funds to relevant parties. It ensures a seamless flow of funds till the vendors and logistic partners are paid, after deducting the intermediary’s fees and commissions.
- When the customer buys goods or services, payments are made through online modes like Debit Cards, Credit Cards, NetBanking, UPI and wallet and are credited to the intermediary’s Nodal Bank Account.
- The commission and fees pre-determined by the intermediary are transferred to a separate Current Account from the Nodal Account.
- The product and service rates minus the intermediary’s commission and fees are transferred to the respective vendors from the Nodal Bank Account.
- Refunds and applicable cashback are debited from the Nodal Account and credited to the customer’s account as and when required.
Q2. What are the benefits of opening a Nodal Account with AU Small Finance Bank?
Some of the benefits that AU Nodal Account offers you include:
- You can efficiently operate your AU Nodal Account using our robust payment solutions.
- You can route funds from different online payment modes used by the customers into your AU Nodal Account.
- Additionally, you can avail of risk management services and block disputed merchants.
Q3. How do I open a Nodal Account with AU Small Finance Bank and whom do I contact?
To open a Nodal Bank Account:
- Contact your nearest AU Small Finance Bank branch. Our dedicated team will guide and assist you through our simplified Know Your Customer (KYC) documentation process.
- We would need to execute a Nodal agreement between you (marketplace intermediary) and the bank.
You have to submit the duly executed agreement copy, deal visibility sheet, Current Account details, and CIF ID to your Relationship Manager, who will then sign the memo and submit it to our operations team. Once the back-end process is completed, we will open your account.