NACH E-Mandate registration process-Frequently Asked Questions

Frequently Asked Questions

NACH E-Mandate registration process

What is NACH?

NACH (National Automated Clearing House) is a funds clearing platform set up by NPCI (National Payments Corporation of India) similar to the existing ECS of RBI. NACH (Debit) & NACH (Credit) aims at facilitating interbank high volume, low/high value debit/credit bulk transactions, which are repetitive/recurring in nature, electronically using the NPCI service.

What are the variants of NACH?

Primarily there are two variants of NACH – NACH Debit & NACH Credit.

What is NACH Credit?

NACH Credit is an electronic payment service used by an institution for affording credits to a large number of beneficiaries in their bank accounts for the payment of loan instalment, dividend, interest, salary, pension etc. by raising a single debit to the bank account of the User Institution (Corporate registered for NACH Services).

What is NACH Debit?

NACH (Debit) facilitates the Corporate for collection of, loan instalment repayments /  telephone / electricity / water bills, cess / tax collections, periodic investments in mutual funds, insurance premium etc., that are periodic or repetitive in nature and payable to the User Institution (Corporate registered for NACH Services) by large number of customers etc.

What is a mandate?

Mandate is a one-time registration process. It is just an authorization to your bankers to debit your account with a fixed amount or up to a certain limit as per the frequency given by you in mandate form.

What is a e-mandate?

E-Mandate is customer approving the Mandate digitally using Debit card / Net Banking / Aadhaar based authentication in online mode.

What are the variants used for e-Mandate authentication?

Debit card / Internet Banking /  Aadhaar based authentication in online mode.

What is UMRN?

UMRN – UMRN is a Unique Mandate Reference Number allocated to each new mandate created in NACH Debit. It is auto generated by the NACH system during mandate creation. UMRN is mandatory for every transaction and even during mandate amendment and cancellation.

What is the eligibility of NACH e-Mandate?

An applicant needs to have an Debit Card / Net Banking / Aadhaar Card / PAN are eligible for e-Mandate for authorising the mandate online.

Are ECS and NACH e-Mandate alike?

ECS is offline mode of Mandate, whereas e-Mandate is online