e-NACH: explained in a very simple way

e-NACH process

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


e-NACH process
E-NACH PROCESS FLOW

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

Leave a Reply

Your email address will not be published. Required fields are marked *

Back To Top