ECS Nach Mandate is one of the finest online auto debit procedue India has adopted. However, once you give ECS NACH mandate, then you must also well in advance aware of the rules of how to cancel or stop ECS NACH mandate. Let us discuss on this subject in today’s post.
I have written a detailed posts about NACH mandate (You can refer it at “All about NACH (National Automated Clearing House)” and “Video Tutor-How to fill the NACH Application Form?“).
The major comments for those two posts were the the problems related on how to cancel or stop the ECS NACH mandate. Hence, I thought to write a separate post on this.
Let me explain the same with below image for your simplicity.
You can refer the below video of NPCI for the same.
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.
# 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.
Now you might have understood the concept of NACH and how it will work. Let us go further and try to understand the topic for which I am writing this post.
If we go by the RBI FAQs on NACH mandate, it is clearly mentioned as below:-
Can the mandate once given by a customer be withdrawn or stopped?
Ans : Yes. In case of any need to withdraw or stop a mandate the customer can do so by approaching the user institution to withdraw the mandate. The account holder / customer can also withdraw the mandate / debit instruction directly from his / her banker without involvement of the User institution. The withdrawal instructions of a customer in such cases would be treated equivalent to a ‘stop payment’ instruction in cheque clearing system. However, as a matter of best practice, the customer may also provide prior notice or intimation of mandate withdrawal to the ECS user institution well in time, so as to ensure that the input files submitted by the user institution does not include the ECS Debit details in respect of the withdrawn / stopped mandates, leading to avoidable returns/rejections etc.
RBI clearly mentioned that you can either approach your bank or to an insitution to whom you have given such ECS mandate ( mean to the lender of your bank, electricity board, water board, mutual fund company or any organization to whom you authoritzed to collect the money from your bank account).
Few Mutual Fund Companies, Banks or Stock Brokers offer you to cancel your ECS NACH mandate cancellation request online itself. However, there are many who not offer such facilities and it is a struggle for you to cancel your mandate. In such a situation, the best idea is to approach your bank and apply for NACH cancellation. Otherwise, a reversal of NACH mandate is nothing but a dishonor of payment and it may impact your credit score.
You can use the same NACH registration form to cancel the mandate. I have created a video on this. You can refer the same for further understanding of how to fill the NACH Form.
Conclusion:- NACH facility is a wonderful option for auto-debit of your payments or investments. However, knowing about how to cancel is also important before you give such a mandate to someone.
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View Comments
Nach each charges to cancel
Dear Tariq,
Approach the bank for this purpose.
I have started investing in sips for mutual funds for the first time through INDmoney. It asked me to sign the auto pay mandate and i did so and later few days back sip got successful and money is debited. The total sip amount of 2 funds include 2500( all separate sip funds of 1000, 1100 and 400).But on that same day i get 2500 debited from my account to NACH" DR INW-FIN INDIAN CLEARING.. I was sure that i only signed this autopay mandate, and when i ask indmoney they say they can't see any such money debited through their services. I am really in need of help as it is my first time in this.
Dear Tarang,
Raise an issue with your bank immediately.
I had started an ECS NACH mandate on My Kotak 811 account, although i had withdrawn my mutual funds but the ecs mandate was not cancelled, I had stopped using that account since it was a virtual account. Recently, I got to know that since the ECS mandate was active the account has a lien balance of 48000 in charges. What can I do to settle this, i have already discountinued the mandate now, and firstly the customer care informed me that it wont affect my salary account which is still under process with kotak, some are saying that the entire amount will be deducted, some are saying that the charges can be waived off. I am okay paying a settlement amount to close this issue but not the entire amount. Please suggest.
Dear Sameer,
First find out why the NACH not canncelled even after your request. Also, check why such hefty penalty.
Dear sir
10-14 days before I am looking for EMI .i found beju's app and done all the process for EMI and e-mandate registration done but they fraud with me they don’t give any money.i want to cancel that e-mandate registration.
Dear Sushil,
First raise the complaint with proper regulator against the lender.
Good noon sir, Institution not responding properly and Bank Manager told if closed this account and open another one also debiting because of Aadhar based enabled Auto-debited.
I'm confusing how to cancel this one Sir.
Please confirm Sir, if any corporated bank not allowed auto debiting by customer request.
Dear Prasad,
NACH also linked to account but not just with Aadhaar. If bank account changes, then obiviously one can't process.
Thank you very much Sir for your suggestion
I taken Unacademy course 1,05000 is converted into emis. I requested for cancellation of my course but they are not cancelled and always doing fraud.my emi are debited from account.
Can I cancelle this ecs from my account.
Already contact my Union Bank of India brach manager, he said not cancellation on back side need to go your institution & ask for cancellation. Please suggest how can I cancel eNACH auto debit
Dear Prasad,
Try to contact the organization at first. If nothing works, then the best and worst option also is closing the bank account.
Good noon sir, Institution not responding properly and Bank Manager told if closed this account and open another one also debiting because of Aadhar based enabled Auto-debited.
I'm confusing how to cancel this one Sir.
Please confirm Sir, if any corporated bank not allowed auto debiting by customer request.
Dear Prasad,
How it can be when NACH is based on account number also?
Same problem i am also facing . I took a subscription plan from prep ladder. I have paid it's four installment.As they auto debit my installment.But due to financial issues I want to discontinue the plan and stop auto debit facility of installment from my federal bank. How to do so. Please suggest
Dear Paramjeet,
Better approach the bank.
Dir sir
Ecs NACH BAND KAR DIJIYE
Dear Nandu,
Approach the bank.
Dear sir,
I had submitted my kya documents to a car dealer. He misused it. I am getting regular messages regarding my loan is sanctioned. I spoke to him so many times regarding cancelation of my loan but no satisfactory answer is received from dealers side.
I gutting regular messages from bank ...security NACH mandate is sent to your bank . Mandate will be presented if EMI is not paid.
Also received messages that auto loan is due on 5th of Aug this month.
What can I do sir.
I don't fill any form, no signature, no token , no delivery of car , nothing.
Please suggest me
Thanks
Dear Sameer,
Raise a complaint against dealer with car company.
I taken byjus course 40000 is converted into emis. I requested for cancellation of my course but they are not cancelled and always doing fraud.my emi are debited from account.
Can I cancelle this ecs from my account
Dear Raj,
Check with your bank.