December 13, 2021

E-NACH and its impact on the economy

To begin with, let us first discuss what NACH or mandate means. National Automated Clearing House (NACH) is a set of instructions that you give to your banks or financial institutions to allow them to debit the informed amount from your bank account. This is otherwise called as Mandate. If banks perform the mandate process electronically, then it is called as E-NACH or E-mandate. So, before getting to know the actual process of NACH, we will help you understand some key terms used for participants involved in the entire NACH process.

  • Sponsor Banks- These banks are registered with NPCI for facilitating the NACH process. Currently, NPCI has 34 banks acting as Sponsor Banks.
  • Destination Bank- It is the bank where customers hold their bank account.

So, you must have got a fair understanding of what NACH means. Henceforth, we proceed with E-Nach or E-mandate. With developments around the corner, the digital payment industry has completely remodeled the functioning of the NACH process. To facilitate this, the Government of India introduces the E-Mandate through NPCI.

Why do we need E-NACH?

 To provide a frictionless mandate service, NPCI popularized E-NACH to lessen the burden of customers by impeding the requirement of running behind several hyperbolic procedures. Customers always expect to complete the procedures or steps easily without causing any hindrance. With E-NACH, Customers need not fret as they can upload their documents through phone from the comfort of their house. The next question that might tweak us is, how is it even possible?

Compared to the conventional NACH process, e-NACH is way ahead in mitigating time while successfully administering the process. This is especially due to the protocols followed in the entire process. E-NACH is an electronic process of aiding the banks and other financial institutions including government bodies by creating a unified platform of providing automated payment services. Thereafter, the customer has to approve the concerned authority to deduct the amount from his/her bank account on a fixed day in the following months. The entire process takes about 7-14 business days based on several factors. Altogether, the E-NACH process gets the act together by ensuring a vivid and secured platform for delivering a complete mandate process.

The below image shows the outright steps involved in the E-NACH process.

E-NACH Process Flow


E-NACH has been beneficial to both the customer and financial institutions. Following this, the Government of India has also initiated many internet-based services, like Aadhaar based eSign, eStamp paper thus completely shaping up the economy with a motive of keeping them technically upfront perpetually. The modern era has provided much freedom to technology in revamping and replacing the conventional procedure of mandate services.

The following objectives define the unique purpose of E- NACH service.

  • To break the shackles of processing on the destination bank,
  • The participants on the eMandate platform should implement real-time and entire process automation including auto submission of authenticated mandates to the NACH system.
  • NPCI reserves the right to allow participation in the eMandate process only when the bank is ready to carry out with full automation.


There is no doubt that with the E-NACH payment service, availing and paying your EMI on loan is an absolute cakewalk thus reaping the benefits well. The main agenda is to offer a much-streamlined service to the customers. Compared to the paper-based mandates, the E-NACH service does not carry such complicated procedures. Apart from this, they do carry several other important benefits.  With E-NACH on hand, there is

  • No need for any check book to get any loan facilities
  • Simple process for collecting recurring payments without any cumbersome procedure.
  • Advanced user experience with error-free registration and automation of payment
  • Does not involve any late fees and penalties due to timely auto-debit.
  • Mandate registration is completely automated and is available 24 X 7 on the website.
  • Initially requires a one-time authentication for registration of the mandate. Thereafter, all subsequent payments will not require your intervention.

CAMSPay- E-Mandate process simplified!

 CAMSPay E-mandate service serves a lot of benefits to your customers. The below image shows why our services are standout among others:


Any advancement in technology gives a positive outlook and creates a sense of confidence among people. NPCI introduced ENACH for creating electronic mandates with the motive of revolutionizing the digital payment industry. Currently, around 10 banks adopted E-NACH and many more are expected to be in line in the future. Government mulls that setting up of e-mandate would be crucial for creating mandates as a result of which will lead to the upliftment of our Indian Economy.

Want to leran more? Visit our CAMSPay website

Connect with us in our Social Media

Leave a Reply

Your email address will not be published.

« Back