Recently NACH was made compulsory for your any payment, which is recurring in nature instead of a current ECS mandate. This applies to your SIP of Mutual Funds, Utility Bills, Insurance Premiums, Credit Card Bills, or any payment, which you feel recurring in nature.
Note:-Refer our latest post “How to cancel or stop ECS NACH mandate?“.
From 1st May, 2016 you have to use this facility to give auto instruction of debit from your bank account. ECS mandate will go off completely for banks, which are live on NACH. Hence, first let us understand what is NACH (National Automated Clearing House). Refer this NPCI circular for the same.
National Payments Corporation of India (NPCI) created this wonderful video of understanding this facility in a simple way.
I tried to explain the same from this below image.
You notice that here customer means you. NPCI (National Payments Corporation of India) is an organization, which meant to consolidate and integrate the multiple systems with varying service levels into nationwide uniform and standard business process for all retail payment systems. The other objective was to facilitate an affordable payment mechanism to benefit the common man across the country and help financial inclusion.
What is the difference between the ECS and NACH?
# In case of ECS, the process is manual. Hence, takes more time or verification issues. However, in NACH it is defined workflow, which reduces the time.
# In case of ECS, you will not get a unique mandate registration reference number. However, in NACH you get it and can be used for future reference.
# In case of ECS, the possibility of higher rejection ratio. But due to less paperwork in NACH, rejection ratio is less.
# Settlement of payment, usually takes 3-4 days in ECS. But in case of NACH it will be settled on the same day.
# There is no such dispute management system placed in ECS. However, in NACH it is well set and can be resolved issues easily.
# Registration of ECS usually takes around 30 days. But in NACH it is just 15 days.
Who are the participating banks?
These are the live banks for which NACH is mandatory to adopt from 1st May, 2016. All core banking enabled banks are soon going to be part of this facility. Currently, all major banks are part of this NACH.
Few other features of NACH facility are as below.
How typical NACH application form looks?
Below is the same NACH application form which from 1st May, 2016 will be applicable to all your ECS transactions.
Hope I cleared doubts regarding NACH mandate, which will soon replacing ECS.
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View Comments
I want to take a personal loan of 10,000 from Snapmint.
The period for loan is 5 months.
Installment amount is Rs. 2168 per month for 5 months.
First EMI deduction will start from 01 – 04 – 2024 but in the eNACH it is showing final collection date of EMI as 30 – 04 – 2026. Details are below. Kindly guide me.
Occurrence
RCUR
Recurring Frequency
ADHO
Mandate Amount
10000.00
Amount Type
Maximum
First Collection Date
2024-04-01
Final Collection Date
2026-04-30
Dear APS,
Better to avoid such loans.
Thank u so much
608|Bank Restricts Dublicate request. mandate not registered_not maintaining req balance| rejected by NPCI now what can i do how to solve this issue
Dear Ruksana,
It is unclear reason. Approach the bank.
Due to an insufficient funds ENACH is dishonoured 4 times in this financial year I got a message from SBI that e-NACH facility will be stopped, my doubt is e nach facility stepped means regarding new loans obtaining enach or already existing loans already e nach , and after this my existing loans had enach it will continue???? I mean automatically emi cut in my bank account
Dear Kbs,
Check with mandate was stopped with your bank.
Can the EMI amount mentioned in Home loan sanction letter be different from the amount mentioned in the ENACH submitted online?
Dear Danish,
MUST NOT BE.
Dear sir!
I had taken a personal loan in mobikwik with nach mandate.i can emi in mobikwik app. after few emi is completed.then in mobikwik they are adding some extra charges with out any reason.so I can stop the paying emi's.lenders can't contact me.and also there is no response for emails.
Unfortunately I had check the bank account which is given to mandate.i can't use the account from long time.it having -20,000 balance. So i leave the account and the account is linked with my aadhar only.then i noticed that due amount is occurring by nach mandate.In further there is any problem from it to me.please help me to resolve the issue.
Dear Sai,
No option but to approach the bank and opt for closure.
Applied loan for 2 years but e mandate showing end date 30 years
Hi , I had 500 in my account on date of EMI of rs 4527 was required, nach was returned due to insufficient balance but also 500 was debited. And next again I received nach of 4527, where did my 500 go and not just it even any money I credit it is vanishing same way??
Dear Jameel,
Check immediately with your bank.
applied loan for 3 years but NPCL showing 30years in agreement . They are telling its new rule ?why it is
Dear Dinu,
I don't know any such rule.
I have cancelled my NACH in Kotak which was for insurance. I got message on due date that the payment was failed due to Mandate not exists and NACH bounce charges will be charged. As I have cancelled already will I be charged with bounce charges?
Dear Suman,
It is illegal to charge so. Better to be in touch with the bank immedaitely.
Hi i hold the account with idfc and NACH was enabled. Manytimes requested to disable but it was not disabled. because of this amount got debited from other back account and credited to IDFC every month end. so i requested to close my account in idfc and they did. Even after that amount debited from other account. But since idfc account is already closed, will the amount returned to my other account. what will be the solution. How can i disable this in future since account is also not there.
Dear Sornaraja,
If the NACH mandated account already closed, then how come the amount will get deducted?