Direct Debit

Direct debit system refers to a scheme whereby an instruction is given to a banking institution that allows a transaction to be carried out.

How it works?

  • Originator create contract specifying start/end date of contract, how much and when transaction needs to take place and which accounts needs to be debited and credited.
  • Originating bank send mandate to paying bank passing through clearing house (BOM).
  • Paying bank adhere to direct debit instructions and process the mandate. Accept or reject.
  • If mandate is accepted, account of payer is debited while account of originator is credited.
  • If mandate is rejected, paying bank sends a return file to originating bank who informs concerned parties.

Our main clients for Direct Debit are:

  • ABC Banking Limited
  • Bank of Baroda
  • Habib Banking Limited
  • The Hongkong and Shanghai Banking Corporation
  • The Mauritius Revenue Authority