NACH Full Form, Mandate, UMRN, Cancel and Bounce Charges
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NACH stands for National Automated Clearing House. It is NPCI's system for repeated bank payments. Companies use NACH credit to pay salary, pensions, dividends and subsidies into many accounts, and NACH debit to collect loan EMIs, SIPs, insurance premiums and bills from your account, using a mandate you sign.
- Full form
- National Automated Clearing House
- Run by
- NPCI, regulated by RBI
- Started
- 29 Dec 2012
- Replaced
- ECS (fully by 31 Jan 2020)
- Working days
- All days of the week, since 1 Aug 2021
- Debits need
- A mandate signed or approved by you
- Mandate number
- UMRN
- Wrong debit after you cancel
- Bank fixes within T+1 day; ₹100/day if late
What is NACH?
NACH is one central system, operated by NPCI, for payments that are high in volume and repeat regularly. It was formed to bring the many regional ECS centres into a single national system. Your account is identified by its account number and the bank's IFSC or MICR code, or, for government benefits, by your Aadhaar number.
Many accounts → one company. A company collects regular payments from its customers' accounts, on the strength of a mandate each customer has given.
- Loan EMIs
- Mutual fund SIPs
- Insurance premiums
- Electricity, telephone, water and gas bills
You must authorise it first. Without your mandate, a company cannot debit your account through NACH.
One company → many accounts. A company or government department pays many people in one go.
- Salary and pension
- Dividends and interest
- Government subsidies and benefits (DBT). RBI calls NACH the most popular mode for DBT credits; payments sent by Aadhaar number go through its APBS leg.
You don't need a mandate to receive money. If a NACH credit is not credited to you, your bank must credit it or send it back within T+1 day, or pay ₹100 a day for the delay.
How a NACH EMI auto-debit works
Your mandate is registered once. After that, each instalment is debited on its due date without you doing anything.
What is a NACH mandate?
A mandate is your standing permission for a company to debit your account at a set frequency. It names your bank account, the company, the amount (fixed or a maximum), how often, and for how long. You can give it in two ways:
- Paper mandate: a NACH mandate form you sign and hand to the company.
- E-mandate (e-NACH): approved online, without paper, by logging in to your bank's net banking, or with your debit card or Aadhaar. Not every bank offers every option.
What is UMRN?
UMRN means Unique Mandate Reference Number. It is generated through NPCI when your mandate is registered, and identifies that one mandate. Note it down: you need it to cancel the mandate or to complain about a debit.
How to set up a NACH mandate
- Open the mandate link from your lender, fund house or insurer, and check the amount, frequency and end date.
- Choose your bank account and approve with net banking, debit card or Aadhaar.
- Approve on your bank's own page.
- Wait for the "registered" status and note the UMRN.
- Get the NACH mandate form from the company that will collect the payment.
- Fill in your account number, your bank's IFSC or MICR code, the amount, frequency and start and end dates.
- Sign it exactly as in your bank's records, and hand it to the company.
- The company's bank sends it through NPCI to your bank for verification.
- Once accepted, a UMRN is generated. Ask the company to confirm registration.
A paper mandate takes longer to register than an e-mandate, because the form has to be scanned and checked. If it is rejected, you will need to submit a fresh one.
How to cancel or stop a NACH mandate
You can cancel or change a mandate by telling the company that collects the money, or the bank where you authorised the debit.
- Tell the company (lender, fund house, insurer) in writing, quoting the UMRN. Keep the acknowledgement.
- Ask your bank to cancel it. Many banks offer this online. At ICICI Bank, for example: Internet Banking → Customer Service → Service Requests → ECS/NACH Mandate Cancellation.
- Check your next statement. If you're closing a loan, cancel the mandate only after the lender confirms closure; a cancelled mandate does not cancel what you owe.
Debited after you cancelled? Under RBI's rules, if your account is debited despite your revoking the debit mandate with your bank, "Customer's bank will be responsible for such debit. Resolution to be completed within T + 1 day." If it is late, the bank owes you "₹100/- per day if delay is beyond T + 1 day." T is the day of the transaction. If your bank doesn't fix it, complain to the RBI Ombudsman.
What if a NACH debit bounces?
If your account doesn't have enough money on the due date, your bank returns the debit unpaid. Then:
- Your bank charges a fee. Amounts differ by bank; check your bank's schedule of charges. Example below.
- The company may charge too, as set out in your loan or policy terms, and you still owe the payment.
- Repeated failures: SBI's policy says that after failed NACH debits 4 times in a financial year, the branch may, at its discretion, ask for all mandates on that account to be cancelled.
- Legal risk: as SBI's policy explains, failure of an electronic debit for insufficient funds is covered by Section 25 of the Payment and Settlement Systems Act, 2007, which provides for prosecution, much like a bounced cheque.
| SBI charge (NACH mandate, including e-mandate) | Amount |
|---|---|
| One-time mandate authorisation, per mandate | ₹50 + GST |
| "Failed mandate" (SBI's term) | ₹250 + GST |
Source: SBI service charges updated as on 30 Sep 2024. Other banks' charges differ.
NACH vs ECS
ECS (Electronic Clearing Service) was the older system for the same job, run by RBI through many regional centres. NACH replaced it.
| NACH | ECS | |
|---|---|---|
| Run by | NPCI | RBI |
| Set-up | One central national system | Many local centres, with regional and national variants |
| Status | In use since 29 Dec 2012 | Last centres moved to NACH by 31 Jan 2020 |
If an old letter or form says "ECS mandate", today it is handled as a NACH mandate.
NACH vs UPI AutoPay
Both let a company debit you regularly and both are run by NPCI. The difference is how you set them up and manage them.
| NACH mandate | UPI AutoPay | |
|---|---|---|
| You approve with | Paper form, net banking, debit card or Aadhaar | Your UPI PIN in a UPI app |
| To pause or cancel | Through the company or your bank | In your UPI app, any time |
History of NACH
NPCI starts NACH for high-volume, repeated electronic payments.
RBI sets time limits and ₹100-a-day compensation for failed transactions, including NACH.
The last ECS centres move to NACH; ECS ends.
NACH starts working on all days of the week.
FAQs
What is the full form of NACH?
National Automated Clearing House. It is run by NPCI.
What is the difference between NACH credit and NACH debit?
NACH credit pays money into many accounts, such as salary, pension, dividends and subsidies. NACH debit collects money from many accounts, such as loan EMIs, SIPs, insurance premiums and bills, using a mandate you give.
What is UMRN in NACH?
The Unique Mandate Reference Number, generated through NPCI when your mandate is registered. Quote it to cancel the mandate or to complain about a debit.
How do I cancel a NACH mandate?
Tell the company that collects the money in writing and ask your bank to cancel it, quoting the UMRN. Many banks let you do this in net banking.
Money was debited after I cancelled my mandate. What now?
Complain to your bank. RBI makes your bank responsible for such a debit, to be resolved within T+1 day, with ₹100 a day compensation if it is late. If unresolved, complain to the RBI Ombudsman.
What is the charge if a NACH debit bounces?
It depends on your bank. SBI, for example, lists ₹250 + GST for a failed mandate. The company may also charge you under your loan or policy terms.
Does NACH work on Sundays?
Yes. RBI made NACH available on all days of the week from 1 August 2021.
Is NACH the same as ECS?
No. NACH replaced RBI's ECS; the last ECS centres moved to NACH by 31 January 2020.
Official sources
- RBI – Payment and Settlement Systems overview (NACH, all days from 1 Aug 2021) (accessed 31 Oct 2026)
- RBI – Payment Systems in India booklet (ECS to NACH migration) (accessed 31 Oct 2026)
- RBI – Annual Report, payment systems table (NACH start date) (accessed 31 Oct 2026)
- RBI – Turn Around Time and compensation for failed transactions (20 Sep 2019) (accessed 31 Oct 2026)
- NPCI – About NACH (accessed 31 Oct 2026)
- Axis Bank – NACH debit: mandates, e-NACH modes and UMRN (accessed 31 Oct 2026)
- ICICI Bank – E-NACH and e-mandate (accessed 31 Oct 2026)
- ICICI Bank – e-NACH terms (cancelling a mandate) (accessed 31 Oct 2026)
- ICICI Bank – ECS/NACH mandate cancellation in Internet Banking (accessed 31 Oct 2026)
- SBI – Service charges updated as on 30.09.2024 (NACH mandate) (accessed 31 Oct 2026)
- SBI – Policy on frequent dishonour of cheques and failed NACH/ECS (accessed 31 Oct 2026)
- NPCI – UPI AutoPay guidelines (approve with UPI PIN, pause or revoke) (accessed 31 Oct 2026)
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