NACH Debit is the product of NPCI to provide a better & efficient Mandate based debit services to the banks. It is an advanced version of ECS Debits. Following are the key features of the NACH Debit:
- Automated processing and exchange of mandate information electronically with well defined timelines for acknowledgement/confirmation.
- Each mandate needs to be accepted/authorized by the debtor bank before the User can initiate a transaction
- Each mandate is uniquely identified by Unique Mandate Reference Number (UMRN) which makes tracking of multiple mandate details easier for customers.
- Defined and agreed SLA’s to be implemented-provide Governance model and defined timelines for mandate processing.
- Enable the usage of standardized Mandate Forms.
- Mandate repository containing Mandate details to be maintained for the purpose of validating mandate UMRN available on the NACH transaction files, at the time of NACH transaction processing.