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What is e-NACH & e-Mandate?

Just curious, e-NACH is an abbreviation, right?
Yes, e-NACH stands for Electronic National Automated Clearing House.
Sounds promising, tell me more...
E-NACH and e-Mandate are easier ways for merchants and their buyers to handle all recurring payments like telephone bills, insurance premiums, utility bills, SIPs, school fees etc.
For instance, if you are signing up for an insurance plan through an e-Mandate, you can schedule all your premium payments through a simple online process at the start of the insurance period, instead of manually keeping track and making individual premium payments. No more pesky reminders or late fees!
e-Mandate Screen
So is there a difference between e-NACH & e-Mandate?
They are two different services, both delivering the same result i.e. enabling automated recurring payments. e-NACH is governed by NPCI & covers over 40+ banks while e-Mandates are controlled by individual banks and is currently available across 4-5 banks.
Interesting, so how does the service work?
E-Mandates can be directly set up through a netbanking transaction from merchant websites. In order to do this, a customer would need to complete a one time netbanking transaction authorization after which all subsequent payments will not require customer intervention.
Netbanking is the primary mode for e-Mandates at the moment, with more payment modes to be added in the future.
e-Mandate Screen
This seems similar to ECS (Electronic Clearing System). How is it different?
ECS is an offline process where physical documents have to be filed and checked manually, while e-Mandate is a paperless online process. This has reduced the processing time from 21 to just 2 working days, in most cases.
As a customer is there any eligilibility criteria to apply for the service?
Anyone with an Aadhaar linked bank account at a participating bank is eligible to apply for e-Mandates.
Are there any limits for the number of e-Mandates that can be set up through a single bank account?
No, there is no limit to the number of e-Mandates that can be set up for an account.
What happens in case of insufficient balance in the bank account?
Like any other online transaction, in times of insufficient balance, the payment to the merchant is denied.
How does the payment appear in the bank statement?
Payments will be reflected as NEFT Bank transfers from the customer account to merchant account.
Can I set up e-Mandates or e-NACH as an option for collecting recurring payments from my customers?
Absolutely! e-Mandates are now available for merchants to use. Razorpay Subscriptions is a great way to automate recurring payments using e-Mandates and other payment modes like credit cards.
e-Mandate Screen
That's cool! Tell me more about Razorpay Subscriptions…
Razorpay Subscriptions allows your business to handle all subscription needs like setting up flexible payment schedules, support for multiple billing models and many other value added services.

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