What is NACH?

NACH (National Automated Clearing House) is a funds clearing platform set up by NPCI (National Payments Corporation of India) similar to the existing ECS of RBI. NACH (Debit) & NACH (Credit) aims at facilitating interbank high volume, low/high value debit/credit bulk transactions, which are repetitive/recurring in nature, electronically using the NPCI service.

What are the variants of NACH?

Primarily there are two variants of NACH – NACH Debit & NACH Credit.

What is NACH Credit?

NACH Credit is an electronic payment service used by an institution for affording credits to a large number of beneficiaries in their bank accounts for the payment of dividend, interest, salary, pension etc. by raising a single debit to the bank account of the User Institution (Corporate registered for NACH Services).

What is NACH Debit?

NACH (Debit) facilitates the Corporate for collection of telephone / electricity / water bills, cess / tax collections, loan instalment repayments, periodic investments in mutual funds, insurance premium etc., that are periodic or repetitive in nature and payable to the User Institution (Corporate registered for NACH Services) by large number of customers etc.

What are the key features of NACH Debit?

NACH Debit is a Mandate based debit service. Following are the key features of the NACH Debit:

What is a mandate?

Mandate is a one-time registration process. It is just an authorization to your bankers to debit your account with a fixed amount or up to a certain limit as per the frequency given by you in mandate form.

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 i.e. 8” x 3 2/3”. It is mandatory to restrict the mandate to the size mentioned above.

What is UMRN?

UMRN - UMRN is a Unique Mandate Reference Number allocated to each new mandate created in NACH Debit. It is auto generated by the NACH system during mandate creation. UMRN is mandatory for every transaction and even during mandate amendment and cancellation.

I wish to repay my PNB Loan instalments through my saving account maintained with other bank? How to proceed?

Please submit duly filled and signed NACH Mandate form to your PNB Branch. Branch will get the mandate approved from your Bank through internal process. Once the mandate is approved, the loan instalments will be start deducting from your account on the date/ frequency as mentioned by you in the Mandate form. Normally it takes T+5 days in approval of mandate, but it may take a longer time in some cases because of involvement of various stake holders. Hence, it is advised to submit mandate at least 15 days prior to the due date of loan instalment.

Can I make changes in NACH details registered?

Yes. You can modify the details registered for NACH by filling the Mandate form and ticking the option as `Modify`. You can also cancel NACH registration by filling the Mandate form and ticking the option `Cancel`.

I have already registered myself through ECS? Do I need to register again for NACH services?

No, you need not to fill mandate form again. The existing mandate will continue to be valid for NACH services.

I am a corporate and wish to avail NACH services for making payments to my employees and collecting funds from my clients on regular basis. How to proceed?

Corporate needs to be register for NACH services at NPCI through their Branch. On registration, NPCI will allot a Utility Code (User Number) to the corporate.

The further process is as under:

What are the benefits of NACH?

For Consumers:

For Banks:

For Corporate (User Institutions):

What are the prerequisites for availing NACH services for corporate?

Corporate wishing to avail NACH services needs to be registered with NPCI & obtain Unique Identification Code (Utility Code) for NACH services through their sponsor Bank.

What do you mean by “utility code”?

Utility Code/ Corporate User ID refer to the User Number that has been allocated by NPCI, to the Corporates.

What is a ‘user number’? Can a single corporate have two or more user numbers?

It is the ID issued to a corporate that is linked to the Sponsor bank. The corporate will have to get a new User number if it changes its bank or will have to maintain multiple user number if it is transacting with more than one bank.

Is the user number unique to the corporate or is it linked to the sponsor bank?

User number is unique across the system. If a corporate has a tie up with two banks he will have 2 user numbers.

Define Sponsor Bank?

Sponsor Bank is the Bank, who lodges/initiates NACH Transaction files for collection/ distribution of funds on behalf of their Corporates registered for NACH services. In case of loan EMI, the Bank acts as User Institution as well as Sponsor Bank.

Define Destination Bank?

The Bank responsible for processing of Inward NACH file is known as ‘Destination Bank’.

What is a registered mandate?

A registered mandate is an instruction you provide to your bank to allow periodic payments, such as subscriptions, bill payments, or EMIs, to be automatically debited from your account as per a predefined schedule.

How can I amend a registered mandate?

You can amend a registered mandate by visiting Bank’s corporate website www.pnbindia.in and visit E-Services >> Mandate Management link or through Pre-Login page of PNB ONE and enter the loan account you wish to amend. You will then be able to update details like the payment amount or beneficiary information.

What does it mean to cancel a registered mandate?

Cancelling a registered mandate means that you stop further payments from being processed under that mandate. After cancellation, no additional payments will be made to the beneficiary until you set up a new mandate.

Can I suspend a registered mandate temporarily?

Yes, you can suspend a mandate temporarily if you wish to stop payments for a certain period. Suspension allows you to reactivate the mandate at any time without needing to set up a new one.

How do I revoke a registered mandate?

To revoke a mandate, visit Bank’s website (E-Services >> Mandate Management link), enter loan account number which is suspended, all the details related to loan account number will be displayed, then click on “Revoke Mandates” and proceed further for verification through online channels. Revocation will resume suspended mandates with same details.

Will I be notified after modifying a mandate?

TYes, you will receive a confirmation notification *SMS* once any action (amend, cancel, suspend, or revoke) is successfully processed on your registered mandate.

How long does it take for the changes to take effect?

The changes are processed on real time basis, and you will receive SMS immediately after any action is performed.

Are there any charges for amending, cancelling, or suspending a mandate?

No, there are no charges for amending, cancelling, or suspending a mandate.

What happens if I cancel or suspend a mandate before a scheduled payment?

If you cancel or suspend the mandate before a payment is due, the scheduled payment will not be processed. You will need to re-enable the mandate or arrange for an alternative payment method.

Can I reinstate a cancelled or suspended mandate?

You can reactivate a suspended mandate, but if the mandate has been cancelled, you would need to create a new mandate to resume payments.

Can I revoke or cancel a mandate if I no longer wish to pay for the service?

Yes, you can revoke or cancel a mandate at any time. Once cancelled, no future payments will be processed under that mandate.

Is it safe to amend or cancel a registered mandate?

Yes, amending or cancelling a registered mandate is completely safe. It can only be done by the account holder or authorized person through secure banking channels such as your *Online Banking* or *Debit Card* or through *Aadhar Number*

What should I do if I am facing issues while modifying my mandate?

If you face any issues while amending, cancelling, suspending, or revoking your mandate, please mail at nach@pnb.co.in and we will assist you in resolving the issue promptly

Process flow for Mandate Management as Sponsor Bank: