What does it mean?

NACH, commonly known as the National Automated Clearing House, is a centralised electronic payment or transaction processing system by the NPCI (National Payments Corporation of India). 

The system was established for banks, governments and financial institutions to easily manage cumbersome interbank payments, utility bills, SIPs, premiums, donations, credit card bills, dividends or other recurring payments. It helps maximise the efficiency in the clearance of repetitive payments like the ones mentioned above.

Points to remember

  • NACH payments may not be available if your bank is not a part of NACH. 
  • NACH can also be used for bulk payments or receiving payments like telephone bills, small loans, etc. 
  • You can revoke your NACH mandate at any time. 


What is E-NACH?

Electronic National Automated Clearing House or E-NACH is the electronic payment mandate that makes recurring payments easier. It does not require paperwork; you can do it through a one-time registration using your banking details. This way, you can set up automatic deductions of your EMIs, utility bill and credit card payments, SIPs and more. 

What is NACH payment?

The NACH payment service offered by the National Payments Corporation of India allows you to reduce the time spent handling repetitive payments. Once you submit the mandate, you allow banks or merchants to automatically deduct the requested amount, at fixed intervals, from your bank account.

What is NACH credit?

NACH credit is when merchants or institutions pay multiple beneficiaries electronically with a single debit. This helps businesses to make multiple transfers, such as salary, interest, premiums and more, in a centralised way.

What is the NACH mandate meaning?

NACH mandate is a form you fill up to authorise automatic transactions (NACH debit/credit) of a fixed amount at fixed intervals. Institutes request this form to put the payment system in motion.

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