What is the NACH mandate?
NACH stands for National Automated Clearing House, was set up by the National Payments Corporation of India or NPCI. It facilitates 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.
Now that you know what is NACH mandate read on to learn about its eligibility and advantages.
How to register for e NACH mandate
Here’s 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: Go to the mandates and documents option in the main menu.
Step 3: Select the loan account for which you want to update the mandate.
Step 4: Enter the new bank account details.
Step 5: Choose the process of registration and proceed.
If you’ve opted for the ‘debit card/ net banking option, you’ll 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’ll be redirected to your preferred bank’s website.
- Net banking: Enter your login details and OTP to authenticate your NACH mandate using the bank’s website.
- 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 e-mandate registration, 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’s no hassle of managing physical cash, which further eases the process.
-
Lowering administrative costs
With this mandate facility, organisations don’t 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 costs 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.
-
Secured process
Besides all its convenience, a NACH mandate system offers a secure transaction process. This centralised framework is managed according to RBI’s latest safety guidelines. Also, 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’re 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’ll receive them automatically if there’s any periodic payment. For that, you need to sign the required NACH mandate and submit it.
Frequently asked questions
You can register 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’ll 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. Also, you’ll also have the power to cancel it at any given time. This process aims to streamline the payment process and bring more transparency.
To process e-NACH, log in to your bank's net banking portal or mobile app. Navigate to the e-NACH or auto-debit section, select the desired biller, and fill in the required details. Authenticate the mandate using either net banking credentials or a debit card, then verify via OTP sent to your registered mobile number.
To process e-NACH, log in to your bank's net banking portal or mobile app. Navigate to the e-NACH or auto-debit section, select the desired biller, and fill in the required details. Authenticate the mandate using either net banking credentials or a debit card, then verify via OTP sent to your registered mobile number.
To activate a NACH mandate, obtain the NACH form from your service provider or download it from their website. Fill in the necessary details, sign the form, and submit it to your bank. The bank will verify and process the mandate, after which it will be activated for automatic periodic payments.
