What is NACH Mandate?
NACH, or National Automated Clearing House, was set up by the National Payments Corporation of India or NPCI to facilitate high volume electronic transactions across various financial institutions. NACH mandate aimed to consolidate the ECS payment system and implement a better framework for online transactions.
The NACH mandate is primarily helpful in streamlining recurring transactions like various payments and investments. With this system, you need not worry about making such payments manually. Once approved, these payments will be automated, and you can manage them easily. You can now sign a Bajaj Finserv NACH mandate to streamline your expenses and avoid any defaults.
Now that you know what is NACH mandate read on to learn about its eligibility and advantages.
How to register for NACH mandate
Here is a step-by-step guide on the NACH mandate registration process for Bajaj Finserv –
Step 1: Log in to Bajaj Finserv Customer Portal
Step 2: Click on the E-mandate option
Step 3: Review all the personal information and then click on the ‘Proceed’ option
Step 4: Authenticate your bank account information, select your preferred registration mode, go through the disclaimers, and then click on the ‘submit’ option
Step 5: If you opt for the OTP option, then enter the code sent to your registered mobile number and click on ‘submit’
On the other hand, if you have opted for the ‘debit card/ net banking option, you will be redirected to the ‘Digio Page’. Here you can click on your registration mode, read the disclaimers, and then submit it.
Step 6: Once you complete either of the processes, you will be redirected to your preferred bank’s website.
- With net banking: Enter your login details and OTP to authenticate your NACH mandate using the bank’s website
- With debit card: To complete the Bajaj Finserv NACH mandate online with a debit card, provide your debit card details and OTP using the bank’s website
Step 7: Once this mandate is authenticated successfully, your bank will approve it in due course.
After you complete this process and your Bajaj Finserv NACH mandate receives approval, you can check the same on your Bajaj Finserv account.
Alongside knowing the registration process of a NACH mandate, you should also know that you can cancel it before its expiry. You can contact your bank for this purpose. Otherwise, a related organisation can also do it by submitting a form.
Features of NACH Mandate
The advantages of a NACH mandate are –
Streamlined payment system
The most significant NACH mandate advantage is simplifying the payment method. Nowadays, you can easily pay off your loan EMIs, or make timely deposits through this system. Moreover, there is no hassle of managing physical cash, which further eases the process.
Lowering administrative costs
With this mandate facility, organisations do not have to chase their clients for payments. They can ask them to sign this form and complete the payments accordingly. Hence, it lowers the administrative cost associated with it.
Simple and transparent
Irrespective of the financial institutions, the NACH mandate is a simple process to follow. Once you sign the required form and submit it, it will get activated, allowing financial institutions to complete transactions without hassle.
Besides all its convenience, a NACH system offers a secure transaction process. This centralised framework is managed according to RBI’s latest safety guidelines. Additionally, the payment solution providers strictly maintain PCI compliance, ensuring greater safety.
Types of E-NACH Mandate
Along with that, you should also know that an E-NACH mandate has two classifications. Here are the details –
I. Debit mandate
Once signed, it will allow financial institutions to debit the required amount from your account after the specified period. For instance, if you are paying for a loan, the lender will automatically debit its EMI amount every month. It will streamline the payment and avoid any chances of default.
II. Credit mandate
Similar to the debit mandate, you will receive them automatically in case of any periodic payments. For that, you need to sign the required NACH mandate and submit it.
Frequently asked questions
You can get a NACH mandate by contacting your respective banks. You can fill up the mandate details online and verify them through your bank’s website. After that, you will receive your mandate for NACH.
Typically, a Bajaj Finserv NACH mandate or any other E NACH takes 10 to 15 days to get approved (may vary on case to case basis).
The NACH mandate charges are Rs. 0.20 for ACH 306 (migrated), ACH Debit and ACH Pungrain (charges may be subject to change).
The NACH mandate works by providing you with the liberty to allow any other financial institution to auto-debit or credit money in your account. For this purpose, you complete a registration with your bank and select which organisation will have the access. Additionally, you will also have the power to cancel it at any given time. This process aims to streamline the payment process and bring more transparency.