e-NACH: explained in a very simple way

What is e-NACH:

e-NACH is a payment tool which is being used by organizations for payment which are repetitive in nature, once the user signs(digitally/net banking/debit card/aadhar based e-sign) the e-NACH, he gives rights to the concerned entity to debit certain amount on a fixed date of a month.

NACH stands for National Automated Clearing House and e-NACH stands for electronic-national automated clearing house
“E-Nach has been launched by NPCI for faster and seamless Mandate registration process”
It’s the newer version of paper-based NACH, e-NACH is used to provide automated payment service, It is widely being used by the government, banks, financial institution

Why e-NACH needed:

Now there is a question why there is a need for eNACH when we already have paper-based NACH/ACH and SI-standing instruction and various other tools for repeat payment, so the answer is e-NACH is the latest and modern process which is paperless and almost zero involvement of human so e-NACH is very fast and chances of error are almost zero.

The old paper-based NACH takes times from 30-45days in enabling the mandate whereas by e-NACH payment mandate can be successful within few hours

e-NACH process flow:

With the advent of e-NACH, the need to fill paper-based NACH form eliminated, with the electronic NACH entire process of the payment mandate can be completed within few hours since there is minimum human interaction and the complete process is is fully automated

Sponsor Banks live in API E-Mandate

1. KOTAK BANK LTD
2. YES BANK
3. UJJIVAN SMALL FINANCE BANK LTD
4. INDUSIND BANK
5. ICICI BANK LTD
6. IDFC FIRST BANK LTD
7. HDFC BANK LTD
8. EQUITAS SMALL FINANCE BANK LTD
9. DEUTSCHE BANK AG
10. FEDERAL BANK
11. STATE BANK OF INDIA
12. CITI BANK
13. AXIS BANK
14. PAYTM PAYMENTS BANK LTD
15. SOUTH INDIAN BANK
16. KARNATAKA BANK LTD
17. RBL BANK LIMITED
18. JANA SMALL FINANCE BANK LTD
19. IDBI BANK
20. STANDARD CHARTERED BANK
21. KARUR VYSA BANK
22. THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD
23. AU SMALL FINANCE BANK LTD

Destination banks live in API E-Mandate

1. KOTAK MAHINDRA BANK LTD
2. YES BANK
3. IDFC FIRST BANK LTD
4. PUNJAB NATIONAL BANK
5. INDUSIND BANK
6. UJJIVAN SMALL FINANCE BANK LTD
7. ICICI BANK LTD
8. EQUITAS SMALL FINANCE BANK LTD
9. SOUTH INDIAN BANK
10. HDFC BANK LTD
11. RBL BANK LIMITED
12. ANDHRA BANK
13. BANK OF MAHARASHTRA
14. PAYTM PAYMENTS BANK LTD
15. DEUTSCHE BANK AG
16. FEDERAL BANK
17. KARNATAKA BANK LTD
18. STATE BANK OF INDIA
19. DHANALAXMI BANK
20. DBS BANK INDIA LTD
21. TAMILNAD MERCANTILE BANK LTD
22. AXIS BANK
23. JANA SMALL FINANCE BANK LTD
24. CITIBANK N A
25. BANK OF BARODA
26. STANDARD CHARTERED BANK
27. CENTRAL BANK OF INDIA
28. IDBI BANK
29. INDIAN OVERSEAS BANK
30. CITY UNION BANK LTD
31. CANARA BANK
32. UNION BANK OF INDIA
33. THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD
34. SYNDICATE BANK
35. PUNJAB AND SIND BANK
36. KARUR VYSA BANK
37. BANDHAN BANK LTD
38. THE COSMOS CO-OPERATIVE BANK LTD
39. AU SMALL FINANCE BANK
40. DCB BANK LTD
41. BANK OF INDIA
42. JIO PAYMENTS BANK LTD
43. THE KALUPUR COMMERCIAL CO OP BANK
44. UCO BANK
45. VIJAYA BANK
46. ALLAHABAD BANK
47. ABHYUDAYA CO OP BANK
48. THE VARACHHA CO OP BANK LTD
49. THE ADARSH CO OP URBAN BANK LTD
50. THE CHEMBUR NAGARIK SAHAKARI BANK
51. UTKARSH SMALL FINANCE BANK LTD
52. UNITED BANK OF INDIA
53. INDIAN BANK
54. ORIENTAL BANK OF COMMERCE