FAQs - Payments

This section outlines some of the most important FAQs pertaining to the Payments module. If you have any other queries, please reach out to us at [email protected].

1. Who can use NACH for payments?

Any Indian business entity can use NACH to facilitate recurring payments from its customers, vendors or any other player in their business ecosystem.

2. What are the benefits of using NACH for payments?

NACH-based payments are very convenient when you expect to collect payments frequently over a long period of time, either at specified intervals or Adhoc for specific scenarios. Customers do not need to approve a transaction every time

3. What are the primary use cases for NACH-based payments?

NACH-based payments are extremely convenient in facilitating recurring payments like EMIs, subscriptions, expenses, etc. NACH settlement takes 1-2 working days but has higher amounts compared to UPI transactions.

4. What is the process flow for NACH-based payments?

NACH requires a customer (business or individual) to authorize a mandate digitally or physically one time by providing bank account details. Once the registration is successful, the platform can collect payments into their account.

5. How can NACH mandate be set up?

NACH mandates can be set up digitally if the customer’s bank is supported using either a Debit Card or Netbanking. Alternatively, the customer can authorize a mandate form offline by signing as per bank records.

6. What is the difference in the types of NACH mandates?

ENACH, also known as digital mandates is done via API and facilitated fully digitally at the time of registration. Physical NACH on the other hand requires the customers to sign the NACH form.

7. What is the maximum amount that can be deducted via NACH?

The maximum amount that can be debited via a single presentation depends on the amount and the frequency of the mandate registered. However, if the amount to be debited is higher than the registered amount, multiple presentations can be done.

ENACH supports maximum registration up to 10L and physical NACH supports up to 10CR.

8. Is NACH supported by all Banks?

NACH as such is supported by ALL banks that operate a payment system in India. You can find the list of banks supported here.

However, ENACH is supported by a specific set of banks ONLY. The list of banks live and at different stages of integration with NPCI can be found here.

9. What is the benefit of ENACH over physical NACH?

ENACH supports the very quick confirmation of registration and does not require any manual intervention like a physical NACH. In most banks’ cases, a mandate is confirmed within 1 hour.

10. How do we handle Adhoc presentations using NACH?

NACH - be it physical or ENACH allows the platform to set up payments with predefined frequency or Ad Hoc. By setting the frequency to Adhoc, the platform can present a mandate as per the business requirements.

11. Can the ENACH mandate be set up on business accounts?

Yes. Most banks accept ENACH where the current account is not owned by a company or is not a 2-FA account.

12. Does the platform need to open a new bank account?

No. We have partnered with a leading private sector Bank and you can piggyback on Decentro’s utility code to collect payments. However, if you prefer to have the collections done directly to your account, you will need to set up a bank account with the banking partners Decentro supports.

13. Can NACH facilitate instant settlements?

No. NACH, unlike UPI or IMPS, is designed to facilitate recurring payments of higher value. It takes 1 working day for the payments to reflect in the credit account.

14. Can NACH registration fail for any reason?

Yes. ENACH registration can fail for many reasons like invalid account information, insufficient balance, blocked account, etc.

Physical NACH registration primarily fails due to a signature mismatch between the mandate form and the bank account.