E-NACH is a digital payment service initiated by NPCI to help businesses with seamless recurring payments. From paying interests to deducting SIP amounts every month, many audiences desire periodic investments. Not much time has passed when payment processes governing such payments were utterly physical, and people had to visit banks, stand in ever-lasting queues, and submit a mandate form. Scary, Isn’t it!

Nowadays, to authorize recurring payments, you need to submit a mandate form that a bank or a third party can automatically debit a certain amount from your account at regular intervals. Before this automated procedure, obtaining, filling, and submitting the form was purely physical. Here comes the paperless approach of no direct manual intervention.

In 2018, RBI and NPCI made a vital decision of completely digitizing the Paper NACH process. This is called eNACH. With this, recurring payments are digitized, encompassing functionality such as digital signatures with no paper requirement. People in need of insurance, mutual funds, statutory payments, or looking for a monthly deduction as EMI can opt for e-NACH and e-mandate registration.

Let’s know more about e-mandate process and e-NACH registration:

What is e-mandate?

The Indian government, through the National Payment Corporation of India(NPCI), started a process called E-mandate. This process is under the control of individual banks and is currently available across 4-5 banks in India. To go for e-mandate registration, the primary mode for payment is net banking, which implies that merchants with Aadhar linked bank accounts opting for credit cards can easily use this service.

What is e-NACH?

E-NACH registration is the electronic process of helping banks, financial institutions, and other government bodies to provide automated payment services. NACH stands for National Automated Clearing House. Furthermore, NPCI governs e-NACH & covers over 40+ banks. While registering through e-NACH, the user should have a saving account where the recurring account, which is a liability, can be debited automatically within the given time.

What are the advantages of e mandate/ e-NACH?

1. Recurring payments automation:

On a more influential scale, when a merchant goes for an e-NACH process, once he has registered himself with e-NACH, his loan or insurance premiums or investment SIPs, anything that needs automatic deduction will be done in the given interval.

2. Seamless capital infusion:

With less effort and time, when you register your account with e-NACH/e-mandate, capital infusion of a specific amount from your registered account is done at a particular interval. This swift movement from paper-NACH to e-NACH has saved time and effort in the registration process and has made the process faceless, cashless, and paperless.

3. Customer retention:

E-Mandate enables auto-debiting your customer’s account at the start of every billing cycle with just one-time digital authentication. This process reduces the burden on the customer to authenticate recurring payments regularly.

4. Secure transactions:

When opting for e-mandate or e-NACH through Easebuzz, your data is safe, as it offers end-to-end encryption and is PCI compliant. You can avoid checking your monthly deduction from your account as the transaction is safe. In case of insufficient balance, the payment to the merchant is denied.

5. 24*7 e-Mandate registration

With Easebuzz, users can go for e-NACH registration irrespective of the time chosen and can avail the service with a specific deduction of the amount at the chosen interval.

E-NACH and E-Mandate process aid merchants and buyers to run recurring payments such as utility bills, telephone bills, insurance premiums, school fees, etc. For instance, if you sign up for investing in a SIP through an e-mandate process. You can schedule all premium payments through a simple online process at the start of the insurance period and avoid manual tracking before making any premium payments.

The primary objective of eNACH registration is to reduce the burden of manual reminders for the fixed amount. Therefore all the aspiring participants on the E-mandate platform should implement end-to-end process automation, including auto submission of authenticated mandates to the NACH system.

Easebuzz subscription is a great way to automate recurring payments using e-Mandates and other payment modes like credit cards.

How do we register through e-NACH and e-mandate?

The first-time user begins e-NACH registration, and they need to have a savings account.
Individuals can use eNACH to automate their monthly recurring payments by connecting them to their existing system. The steps explained show how to register eNACH to help a customer who avails a secured loan like a home loan on a condition to repay in equated monthly installments (EMI).

Step 1: Check your eligibility for eNACH

If you have an active Internet banking facility or a debit card from a bank that offers net banking as a payment option, you are eligible for eNACH registration. If you do not have it, you can apply for the same at the nearest branch of that specific bank.

Step 2: Initiating E-mandate

For initiating the E-mandate process, you have to contact your bank either in person or over the phone. The representative at the bank will help you with eNACH registration. In this process, you share details such as the account holder’s name, email address or mobile number, start date, and end date of EMI payment. Apart from it, amount type, frequency of payment, the maximum amount to be debit, LAN (16-digit alphanumeric), customer bank account number, and bank name.

You should decide if you wish to pay for EMI with a debit card or a net banking account. After the bank authenticates your form, it is further processed to the sponsor bank.

Step 3: Receive an email and SMS

Next in the registration process is receiving an email and SMS on the registered email address and mobile number. This process requests you to register for eNACH by clicking the link provided, and the link will be valid for ten days.

Step 4: Verification and authentication by the customer

You will have to click on the link to take you to the eNACH preview page. In case you have chosen the payment mode through net banking, you will find all the generic information mentioned earlier, including your PAN number for verification. After verifying the details, you need to confirm it by clicking on the ‘Confirm’ tab. The bank authentication screen appears, confirming all of the data, including the account number, the bank name, and the amount.

Next, you must confirm the details and verify the OTP sent to your registered mobile number. In confirming your eNACH registration, a small amount is deducted from your account. The moment the e-mandate is confirmed, you will receive transaction details about the same.

How to integrate E-Mandate for my business?

E-mandate registration for business is like a walk in the park. Start with recurring payments once you link your account with Aadhar card and fill out the e-mandate details of the form. What’s more? When people opt for Easebuzz, it offers value-added payment solutions and e-NACH service. This makes it easier for merchants in Split Payments, Auto Recurring Payments (eNACH /paper-eManadate/UPI2.0), Auto refund on split transactions, etc.

Wrapping up: 

In a nutshell, both e-NACH and e-Mandate serve the same purpose, but the implementation is different. These two services initiated by NPCI enable automated recurring payments. e-NACH covers over 40+ banks while e-Mandate registrations is under individual banks and is currently available across 4-5 banks. However, if you wish to use subscriptions plans, Easebuzz helps you with Smart-Billing– a value-added service. It is an invoicing solution with e-NACH and subscription plans for all your needs.


The author writes about fintech, banking, and future of SAAS services. He works as an SEO analyst at Easebuzz, so if you're looking for an account that tracks India's fintech scene, you should check out his Easebuzz blog.