What is NACH?

The National Payments Corporation of India (NPCI) offers to banks, financial institutions, Corporates and Government/s a service termed as “National Automated Clearing House (NACH)” which includes both Debit and Credit. It shall be referred to as NACH. NACH (Debit) & NACH (Credit) aims at facilitating interbank high volume, low value debit/credit transactions, which are repetitive in nature, electronically using the NPCI service.

What are the benefits of NACH Debit to Banks?

Benefits of NACH debit are as follows:

  • Standardization and digitization of mandates allowing complete audit trail of the Mandate lifecycle.
  • Simplification of the mandate acceptance and recording process.
  • Will result in reduced operational cost for the banks and its clients.
  • Will result in higher revenues for the banks and its clients as the scope of services expand pan India - beyond the 90 clearing centers.
  • Unique identifier number allocated to each mandate (UMRN – Unique Mandate Reference Number).
  • Secure web access for file upload/download, dissuading the concept of regional NCC/Clearing House submissions.
  • Mandates can be processed by the member for any branch across the country.
  • Allows corporate clients to directly upload files for approval (DCA).
  • Functions on International Messaging Standard - ISO 20022.
  • Minimal time taken to activate the Mandate – same day processing possible.
  • Corporates get to have direct access to the NACH systems, making it easier for them to get access to status of transaction/mandate without delay.
  • Reduction of the uploading work to the sponsor banks, since the file upload will be done by the corporates themselves

Which are the fields to be captured on the Mandate form?

Please refer Annexure 1.

Which are the Mandatory fields to be captured on the Mandate form?

All the fields are mandatory other than the fields mentioned below:

a) Field No. 13 which is Consumer Reference Number.

b) Field No. 14 which is Scheme/ Plan reference Number.

c) Field No. 20, 21 & 22 (Telephone, Mobile & Mail-ID).

d) Field No. 19 which is Customer Additional Identification.

What is Mandate Management System?

Mandate Management System is a service of NACH Debit which facilitates the process of Mandate Creation, Mandate Amendment, Mandate Cancellation and offers all MIS related to the Mandate.

a) Mandate Creation: Creation of a new mandate in favor of the User Institution.

b) Mandate Amendment: Amendment of any of the variables of an existing Mandate, which is Active. UMRN needs to be quoted for Amendment.

c) Mandate Cancellation: Cancellation of an active mandate – UMRN is required to be quoted

What are the different methods for creation of a Mandate?

There are two methods for creation of a mandate:

a) UI based: The user can log into the NPCI provided MMS utility and initiate a mandate using a user interface.

b) File based: The MMS utility also gives the user the facility to upload more than once mandate through a file upload method. File format accepted will be XML only.

Why are there two options for creating a mandate?

The bank can use the UI option for uploading singular mandates. The UI allows the bank to create Mandate and approve it at any point of time during the day (between SOD and EOD), without linkage to the MRC and MARC cycles. The file based method for creation of a mandate is particularly for supporting the banks automated process of initiating more than one mandate at a time.

What is the file format to be used for Mandate Creation/Amendment/Cancellation?

a) Mandate Creation : Pain009

b) Mandate Amendment : Pain010

c) Mandate Cancellation : Pain 011

Response and Acknowledgement for each of the request s will be provided in Pain012 format. Kindly refer section 2.3 of the Bank Specification Document (BSD) to gather more details on the file formats. 

What is the size of the Mandate? Is it mandatory to restrict mandate to the specified size?

The mandate has to be in the size of a standard cheque ie. 8” x 3 2/3”. It is mandatory to restrict the mandate to the size mentioned above.

What should be the size and format of the scanned mandate?

Given below is the specification of the scanned mandate.

 a) Front Image

b) The Image should be in black & white.

c) The Image should be in TIFF Format


How many mandates can a bank upload at a time?

The bank can upload any number of mandates to the MMS system, provided a single image file doesn’t exceed 100 KB and a single zip file with multiple image and data files doesn’t exceed 10 MB. The utility allows the bank to upload multiple zip files.

Who can initiate a Mandate?

The Mandate Creation/Amendment/Cancellation request can be initiated by both, the Creditor Bank or the Debtor Bank.