National Automated Clearing House (NACH)

Electronic Clearing Service / National Automated Clearing House (NACH)

Overview of NACH

Want to make periodic payments without the hassle? National Automated Clearing House (NACH) enables you to make repetitive and periodic payments/ receipts with ease!

National Payments Corporation of India (NPCI) has implemented “National Automated Clearing House (NACH)” for Banks, Financial Institutions, Corporates and Government a web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. NACH System can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.

National Automated Clearing House (NACH) is a centralised system, launched with an aim to consolidate multiple ECS systems running across the country and provides a framework for the harmonization of standard & practices and removes local barriers/inhibitors. NACH system will provide a national footprint and is expected to cover the entire core banking enabled bank branches spread across the geography of the country irrespective of the location of the bank branch.

With the implementation of NACH system, NPCI intends to provide a single set of rules (operating and business), open standards and best industry practices for electronic transactions which are common across all the Participants, Service Providers and Users etc. NACH system also supports Financial Inclusion measures initiated by Government, Government Agencies and Banks by providing support to Aadhaar based transactions.

e-NACH

Customers can register for e-Mandate for their loan accounts through the Federal Bank portal. This process eliminates the need for a physical mandate request form. Upon completion of the loan account opening and disbursal, an SMS will be sent to customers with details of the new loan and a URL to register for the e-Mandate.

Features & Benefits

NACH is used by institutions for making bulk payment of amounts towards distribution of dividend, interest, salary, pension, etc., or for bulk collection of amounts towards telephone / electricity / water dues, cess / tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc.

Essentially, NACH facilitates bulk transfer of monies from one bank account to many bank accounts or vice-versa.

NACH Credit is used by an institution for affording credit to a large number of beneficiaries (for instance, employees, investors etc.) having accounts with bank branches at various locations by raising a single debit to the bank account of the user institution.

NACH Credit enables payment of amounts towards distribution of dividend, interest, salary, pension, etc., of the user institution.

NACH Debit is used by an institution for raising debits to a large number of accounts (for instance, consumers of utility services, borrowers, investors in mutual funds etc.) maintained with bank branches at various locations for single credit to the bank account of the user institution.

NACH Debit is useful for payment of telephone / electricity / water bills, cess / tax collections, loan installment repayments, periodic investments in mutual funds, insurance premium etc., that are periodic or repetitive in nature and payable to the user institution by large number of customers etc.

How it works

How to make payments via NACH?

Contact the branch where the SB account is maintained and submit an NACH Mandate for permitting them to deduct the loan amount.
Submit the copy of mandate at Federal Bank branch where your loan account is located.
Through NACH clearing system, Federal Bank will receive the amount as loan installments to your loan account with us

How to make payments via e-NACH?

The following steps are involved in the e-Mandate registration process:

Login: Customers shall log in to the registration portal using their registered mobile number and OTP.
Account Display: Upon logging in, the customer’s active loan account(s) shall be displayed.
Select Option: The customer shall select the “Register e-Mandate” option for the loan account for which the mandate is to be registered.
Registration Page: The registration page will show the loan amount, mandate registration amount, mandate start date, mandate end date, email ID and registered mobile number.
Enter Debit Details: The customer shall enter his debit account number and IFSC code (the operative account can be from other banks as well).
Validation: Upon proceeding to next page, the entered debit account number shall be validated using internet banking details, debit card details or Aadhar card.
Successful Authentication: The customer shall validate through any of the above methods. Upon successful authentication through the customer’s operative account bank, a UMRN (Unique Mandate Registration Number) will be generated, and the e-Mandate shall be registered successfully.

Download User Manual

FAQs

How can we register for E-mandate?
Merchants will provide the registration for E-mandate during the subscription journey. Users can also register for E-mandate for Federal Bank loan accounts through the registration portal available on the Bank’s website.
What happens if my bank account balance is insufficient?
If your account does not have sufficient balance, the E-Mandate will fail, and the transaction will not be processed. Return charges will be applicable in this case. Please refer https://www.federalbank.co.in/rates-and-charges.
Is there any communication provided by the Bank after registration of E-mandate?
The mandate registration success/rejection status will be displayed on the final page of the registration process.
What is the maximum amount that can be registered in E-mandate?
The maximum limit for E-Mandate is Rs.1 Crore, as per NPCI guidelines.
What are the details required to complete an E-mandate registration?
Details of the debit account, debit card / Aadhar Card / internet banking are required for the completion of E-Mandate registration.