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Payment and Accounting Process under MCA 21
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1. Brief Overview
The Ministry of Company Affairs (MCA) has launChedMMCAZI, an ambitious
eGovernance initiative that invoives modernization and computerization of the
operations of the Ministry. This program has been accorded National Mission
Mode status. While technology plays a major role gin-this, Seirvice Oriented
Approach drives this program. It is a well-conceived program with a holistic
approach encompassing all tasks from conceptualiiation to reliout such as
stakeholder analysis, process reengineering, interoperable solution " I”
architecture and security roadmap (that have gone through extensive peer
reviews) 81 change management to co~opt various stakeholders.
The program will provide citizens easy and secureé-access to MCA services
through the country‘s eGovernance infrastructure, iany time and from any
place and in a manner that best suit the citizen. focus of the program is
on bringing about a fine balance of the stakeholder requirements, between
facilitation and control, as a blend of well-defined goals and performance
metrics. Adopting International Best Practices, the goals have been set to
r'nimnv h e is'- 3 as
bi 9 me so alue tot e stak holders atnhave
under: - __
a. Business enabled to register a company and gfitlefistatutory
documents quickly and easily ‘ _ b. Public to get easy access to relevant records and get their
grievances redressed effectively i _ l a l
c. Professionals to be able to offerefficielnt services -to§their_..client
companies ‘ ~
d. Financial Institutions to find registration and verification of
charges easy
e. MCA to ensure proactive effective compliance of relevant laws and
corporate governance ‘1
1’. Employees enabled to deliver best of breed services
M

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2. MCA21 Highlights
a. Introductign 3 of secure electronic filing (efiling) related to all
services thatiare covered by the nationwide network of MCA offices
(20 offices of Registrar of Companies (ROG), the four offices of
_ y. Regional'Diréctor (RD) and Head Quarters (HQ) at New Delhi.
_‘ .y b. “Establishing a MCA21 portal — that will allow efiling from anywhere
fir i‘ei ' i
and at anytimei(i.e. 24 x 7 operations)
.; Pilot-implementation atCoimbatore & Delhi by February and March
2006 and natiohwide rollout progressively by April 2006
. 'Setting Physical Front Offices (PFOs) to provide efiling
- fatilities tofiltlfiosie who do not have their own facilities
. i r _ ‘
e. A nationai “Data Centre" and a “Disaster Recovery Centre" are part
Mof the. computing infrastructure that allows for carrying out all
‘MCA21 service delivery in a secure and dependable manner.
f: Providing sefvi‘ces to all stakeholders based on stringent service
level agreements to ensure high performance through a formal
"-
r! :51? arrangement with the operator of the MCA21 system for a period of
7 ' six years after the Compietion of the implementation '
1 of Service Delivery
hasiimore than @100 services and each service is accompanied by a
MCA
-. i- is" “is
\ forfiiflasq'igfitfigtompanies Act, 1956. The current services of MCA
"are completely/“paper The interaction takes place in one of the MCA
‘-
field offices where the: service seeker will presentithe paper document along
0 With prescribed fees at'th‘e cash counter.
Ingthe proposed method, electronic filing will be used. The electronic filing
_ \ wiil invoive transacting; with MCA either through the MCA Portal (i.e. website)
i i‘sf‘kthat'is accessible: throfigh the Internet or seeking the services of one of the
ysical FI'OHtVOfi’ICES that will act as an assisted facilitation point for efiling.
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Efiling will involve downloading the specified eform from the MCA portal -
where ai|.these forms will be made available free of cost. These eforms are quite similar to the physical form that have been optimized and adapted to suit electronic filing (and duly approved by We Law). These eforms duly filled ‘ f
and signed by the designated people using digital signatures (that provides the necessary authentication as per 1T Act, 2000)1are submitted to the MCA ‘ H portal. The process of filling up forms is also done=usihg free software. °
ii
The MCA21 system checks for the completeness of the eforms electronically,
online, using a set of pre-defined rules. Should there be any'discrepancies in
the eform; the user is prompted to make necessary icorrectionF.--The-response
to the user is provided online. This is done repetitively :Lmtil the form is
complete in all respects. E ‘ I
= ‘ . ‘ '=;‘;.i want-“1‘
Once the form is accepted by the MCA21 system; the fee ‘calculation‘for' the
service is made on the basis of the form type, the daiteof submission-and the
authorized capital. This is done internally based bnii'paraméte’rs- that"*are
stored within the system and kept upto date. 1 - if 13;? iif-i- " a
The MCA21 system prompts the user to choose 9 "
options:
a. Credit Card
b. Internet Banking c. Remittance at the Bank counter l: H as» ;‘-..l~r‘?’=§§m Iii.» .
In the case of items (a) and (b), the control is transferred._to the Bank’s
computer system which in turn enables the tram? _i 'on. In the case Of item
(c) a challan as per‘the prescribed format (3” I MCA21, which is complete in all respects, which éare used by the sen/ice
seeker to make the necessary remittance in a desigpm Bankgbranch. The
same has been reformatted into user-friendly view and generated byIMCAZI
a “is '
system — by retaining and printing all the _informati;on"that;s‘

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5 .‘ The information that-is passed on to the banking system is thefsame as
1i available in challan so as to ensure that there is uniformity in reporting of all
transactions, irrespective of the method of customer payment. The reporting
by Banksa and will be done as per formats (Receipt Scroll
Incorporation along with Receipt Statement and Challan Incorporation) listed
'-runder=-‘Anne_xure$1, 25-and 3 of this document. However, to support the
pmcessingarequirementségofrthe-Bank's computer system certaim additional
; information in respect of the transaction will also need to be passed on.
it at will ' '
rive shanks-WM a L
200 branches will be authorized to receive MCA21
i'élatfledscustomer remittances. A time-period of one week is allowed for the
The important point islthgat the eform that has been submitted, is held in a
> secure location (nobody>inciuding the user will have access-to this) and upon
cOnfirmatiQm of receipt; of money from the bank, the same will be authorized
for .proeegglng-iby» MCAé215;8y5tem and. documents routed electronically to the
Iconcemed field office fpr further processing. Filing is deemed to be completed
qiqly after the;- payment‘ifjor the service iskmade within the stipulated
sat‘f this *y at“ .
ate erther at a Bank or ‘ rough electronic means and a receipt obtained.
If the service seeker} does not make the- 'ryépayment within the
5 stipulated one week the sewice request will 1h addition to the one
week, the document vviiI be held securely for an additional one week for the
. Bank to authorize receipt. , _
~ m: r 4m.“ _ \ . at t
= - * e, .
In thecaserof a, la 1,, y
mgtiqpsiof filing a fresh eform as described above.
s of c-hallan that will be used in the future

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5. Customer Receipts
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b) One of these 3 copies is returned to the}.
acknowledgement and the other one is retained by the. Ban
is for the use of PAO.
a) In the case of a chalian, the aCknowiedgédjii-Sapy of the chanan?.is
es iii-“$5 neaaipt'fi‘ror rug-ire
returned to the sérvice seeker and sew
- in} ~--' _ i ail-‘1‘] v - “ i I l - I .
reference. There Will be no other f a bdgement that WIll
\ + ‘ 1 -l'?,\_ .‘e;“
be provided by the Bank in this case.
b) In the case of credit card and Internet Banking
generates aéreceipt that can be printed ou'tLI'ri
it is provided online and in the cagéiibr an
available on the following day, as the Bankwill ta
.
process this‘transaction
6. Service Charges
In the case of electronic payments using‘ credit cards 'an‘d'l'ri ' '-
the service charge / commission that may be payable-5%f
levied on the service seeker and such amountgk yingaqq
amounts payable to MCAQ
{Refunds
7. Part payments an
There is no concept of, either part
system.
Though there have been cases of accepting part pay v __ ‘
clue to the fact that adequate 0n aédrnelyibfis
system this was
s not available to calculate the fee accurately at the time of feé. Ea
service eseeker as an
k-wand ; one
"a.
. “ink
sacti§fi§5the system
it
: " ii}
the
V
CB
ail.
6ft
. i -~i"'.,.:
its? viii-"it is
- 16,21“
bout one daygto
iii
ke'a
a
to égtlhe L
- Y my .
ngénts as ‘part: ofirmahual
\ I I it:
a (I

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S S k ... e . n n e h F S. .l . .
w .G a a .. m.“ E h 4m m D O 5 ...n.. .m cm a J. = . -
n a h r w t m m _ 1 d w w . 6 k .
m flu m t n. O .m E S - n. e n V, W E W ...H._ - . J a . ....
m t m 0.. c r a w. .- “mm m i .m t . N 9 . .. . m. -. . ,
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m m .9 .. . , H c n .
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a a .. f I all . R T... r. a
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has. been el
J.
I
as part payments,
01‘"? at the t
. _ . i. “Ml. H.
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9. Continuity of Chaiian Numbers
It is, however, possible that a service seeker prints-a chauan butcdoes net
7 ‘ ‘5"‘ii2‘iil‘iri
tender it to a bank, if he decides not to avail the requested-service. Each:
challan will have an expiry date within which it has to be ten 4 at bank;
W.- -_{;_:_w.\,__\ I. 1;, I». I
branch else it becomes invalid and removed from the MCA21 4‘
wczaasmsepn.siaieWn ~ any challan, based on the report received} from the is not reported within stipulated (including grace) ,. thgtiitransaclion
(challan) is treated as void and removed. In this caseyéginceigplchallan has
already been created, Ch‘all'an number is also generatedput.this-.ngrnber will
not be reported.
10. The functions supported by-MCAZI. mg
i. Fee Details: System calculates and displays fag details
for a chargeable service requested by; user“;
services to be covered are as follows:
- Filing of eForms/applications. I ' '4' I
. Inspection of public documents onlinie Etal . Requesting certified copy or extract - Transfer Deeds. “I?
The amount of fee depends on some
i , lhmslill
par
he
company-g
Payment options: Service seeker f'cia'.
ii. .1- .
traditional modes such as cash, demandifdra'figild local cheques a
and the samei'Canbe remitted using a léjCAZi system-generated 5"
pre-filled challan' at designated bank branch.- A. nationwide network -
of 200 branches of the five Banks will be geared toq'fie
receipts and the banks authorized for this purpose are li
ameters' like type of

Page 8

Page 9
viiithin the
1 " :lE
ice seeker
1
Beyond this point the transaction can be:
i
ne only manually and
' it
i-efiilill‘
cheque/bank draft at one of the authorized ian
do
generated and printed on the challan before which the payment is to
3 Copies of Challan may be printed by the serv
be made by the service seeker
iii.
iv.
v.
Outcomes
ling is successfully completed only aiter; necessaMg‘aVments'are
The efi
tits dirsstlv
e
i.
to MCAZI system using an exclusive sfacii
made by the service seeker
lithe
for this
I I "’t faiis’jj. make
.11
I
k ‘ a, standard
séii
at Ban
i
The transaction is ignored if the service
purpOSe
The itemizec' payment is calculated and ready‘; _ft>|‘_t|i'ii3*“v
l
allahs '
The moment the service seeker chooses payinent
payment in the Bank within the dates
challan as shown in Figure
MCA21 System Action
' seeker
Related to the Service Seeker
ll
iii.
C
I
Service seeker is allowed to print these ch
l
i

Page 10
ich the payment
Mte seeker
l; ‘.
.- .. .
. 1 ... q
.r 1.51.4“ 7318.. 05.17 .
'the serrv
tEd on the challan before wh
1.1! I. ll.
an
~
_ .s
.
III-11.10!- I‘ i i. h", V ‘ . \ ‘ . .. V , . ‘ ‘ V 7.‘ .. V . L . . . V V . .7 . . V ‘ . V ‘ H. .7 . .
V ‘7 V , ‘ . V . V . V ‘ - 1‘ . ‘ . . ‘ I . | V . . - v...- V IQ . 4

Page 11
5
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0
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1
w
M
iv.
where there are mismatches are returned
The erroneous transaction are corrected and resen
1, as new
'tOM
ii
transaction.
(Refer Figure -- 2)
r
e
k
a
S
e
k
Inputs from Serv
A
Service seeker is prompted to enter thelhank ‘ A13"
Facility
failure. message
Waits for System to respond with a successor.
ii.
'li he get a
In the case of a successful transaction, the s‘érwcev seekmw
iv
following .business
r.
1
message. that the: receipt will be available on the.
e
m
m... m
. g
m .m
M a m
V » C
... I“
M m
.5 .8
1m; .m .
e» “all m . .e
n .n
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m ..n.
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m |
e U
a a
n e
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9 is
n
a n
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a
t m
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b m e m
y. m m a
a
d W m _.m
U
o U
B.
completed upon bank’s confirmation
t. will
v‘é' failed and i
— the electronic filing
be necessary for the service seeker to restartgthe "
The transaction fails
ll.

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. .i . ... . ... avid“ n: .r» at 5....
s...
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. .Jvh... ....l.. -l.
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. . .. . mi: ‘18.. “.914
... pun.- um—
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the
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ithér i
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bank e
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act
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at
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prompted if service is
ice seeke
system an
or Ciel
centre where Payment
A Service.
seeker can DEV“
should accompany
that is Internet Bank
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At the cgunter of
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Page 18

Page 19
branch will sign the challan and-return one copy=to the. serviceseemr as an
' Tl: digit-i it; 3; .-'
acknowledgement. 5]. ,r \.
When challan is tendered with cheque or draft, a migtal Orr pape-Ir?E?|<(_-_.n§".“a
- ‘ -l:. .fi; ; amulet; a“... ' 33:} I? ‘- '
preliminary acknowledgement will be issued by the bankxtogéthelseryice _. i
to facilitate delivery of receipted challan to him in due course. The official will I?
- w tantra-tr '1' at .. ‘-
ensure that there is no difference between the gfjinstrument and f
as»:- tiia'it-rm. iftjjitij .l-i‘i fi-ni-jfpy‘ti-éi-a’fii ”‘=
. ?“‘i:-.k}-‘i.-li§3fi§7 i-
amount recorded on the challan. The instrumeptli-vgn ‘ “be use"; {for
realization. Subsequently on realization the date, of r "
~ -
will be indicated on the challan. A copy of the chalgggn bea
-"'~i;:,‘;\ an; ’H ‘ ‘
‘ ring the."
_ ., jltt‘iiénfa‘fiifidfiiii
stampwith both tendering date and realization Jim "on! - .
lad
returned to service seeker only after the realizatidniqw I I p
I - rim. ..
In case of receipts through Internet Banking t
direct physical interaction between service seeker and bra ch. Service seeker '
will invoke the mode of payment at the MCA21'portai and respective! channel ’
will be opened for him-to make the paymentitfBei'ngcelectromctin natiJré'; no
paper challan will be needed to conclude this'transactiorififi“ '_ ‘
Card system will be provided with all the relevant infbrmgfiti
in challan, for proper accounting and reporting by‘the bank-bran
Since MCA21 will be supporting different modes of payment,;_
' (defied?
y ‘ . *- tie,
effecting at a branch will include all channel tran; ,somwe,
the counter) accompanied wrth paper challanségwé _
challan. However, reporting information will be ss mfor II n i' .' f i y te _.a
1'; £1" 5.3“ ?u‘n’-xil‘ .53.. _
At the end of customer banking t‘hbiirSfWhéfigggjdh
transactibns based on the channel it has'béén inIWQQT I
Cash (tendered that day)
Clearing Instruments (realized that day) i» .
Electronic (debit effected that day) ' ' p t ‘7' r?

Page 20
t
mg
also gerlerate a
Ehe
the
e'se
mat
ns
Tlle
all
ill also
Focal
S t r
n a .m .. h .t h n r. . . a
m .. ,m ta." . m .. t- ._..a .t w o P. ..w . .. . d . a .- a . 1.0....“ nu . 0 f. C
h ....... r .. . r m 0 ....\ a . 1
.m .. H . . f . -. C .v. .5 .5
III
for onward
-.".
ion to
po
It
A31
lss
. wells
by the
bank
ilable
'paymenthas been
i
a report w
““bayment o
u
I
H
i. H. 1....
1
I
u m - O w w... M J- l... a a 0 E m , t fl . .. . E n
V In D 5 l. e Hrm, fl . Rm.) r...... n
s n .Y. . J. .. ... . r t A
a t .. I a . H. H . . e 12......“ . "ll .
g e a.......@ .U. .. : -a .1 . . rm .l ..
ms .m h fi .. .....m .m a. a .m..-a w
k i... c c .1 e m ..
m .. w. .
finer
0 pave ..
'Ohllllard
m
ii?
secure '
5 ad e
film for
transactions would be
.
. l
_ll.,.._the_ challan data
t lo
7 Cell.
.s an
l
'5
brahch us
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