The FAQs in this sub-section pertain to the ENACH capability of Decentro.

Overview

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. This is in addition to regulated use cases like lending, investments, insurance, etc.

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, either at specified intervals or Adhoc for specific scenarios. Customers do not need to approve a transaction every time, which reduces operational overheads and the risk of a payer not paying on time, etc.

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

NACH-based payments are extremely convenient for recurring payments like EMIs, subscriptions, expenses, etc. NACH settlement takes 1-2 working days but has higher amounts than UPI transactions. The payer cannot cancel, which is a major benefit in lending use cases.

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

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

5. How can the NACH mandate be set up?

NACH mandates can be set up digitally if the customer’s bank supports either a Debit Card or Netbanking. Alternatively, the customer can authorize a mandate form offline by signing as per bank records. Decentro is also working to power the registration through Aadhaar-based e-sign.

6. What is the difference between physical and ENACH?

ENACH, also known as digital mandates, is done via API and facilitated fully digitally at the time of registration. On the other hand, physical NACH requires customers to sign the NACH form, which can be time-consuming, has much higher rejection rates, and requires considerable operational efforts.

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, multiple presentations can be done if the amount to be debited is higher than the registered amount.

ENACH supports maximum registration as well as debit up to 1CR.

8. Do all Banks support NACH?

NACH is supported by all the commercial banks that operate a payment system in India. The list of supported banks is 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 quick registration confirmation, does not require manual intervention like a physical NACH, and has much lower rejection rates than physical NACH due to issues like a signature mismatch. This is in addition to transaction limits of up to 1CR.

10. Does the platform need to create a new utility code?

The platform can create a new utility code through Decentro or move an existing utility code to Decentro. Decentro will help the platform with the process and ensure a smooth and seamless go-live from an operational and technical perspective.

Registration

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

Yes. Most banks that support ENACH allow registration where the current account is not a 2-FA account.

2. Does the platform need to open a new bank account for ENACH?

No. The platform can piggyback on Decentro’s PA escrow to collect payments, which is permissible per PA guidelines from RBI. However, if you prefer to have the collections done directly to your account, you must set up a bank account with the banking partners Decentro supports.

3. Can NACH registration fail for any reason?

Yes. ENACH registration can fail for many reasons, such as invalid account information, insufficient balance, blocked account, etc. This is in addition to scenarios like invalid netbanking credentials, debit card details, or an invalid OTP being entered.

Physical NACH registration primarily fails due to a signature mismatch between the mandate form and the bank account, insufficient funds, etc. In addition, physical NACH can also fail due to any beneficiary bank checks that are put in place by them.

5. What is the maximum period for which a NACH can be registered?

ENACH or even physical NACH can be registered for 40 years only. The platform needs to pass the end date in the request payload. The guidelines issued by NPCI on their website.

6. Is an end date mandatory for registration?

Yes. Remitters can no longer register a mandate as ‘Until Cancelled’ and must give a clear end date at the time of registration as per NPCI guidelines.

7. Is it possible to customize the mandate registration screen?

Decentro allows the platform to customize its UI template before redirecting to the NPCI portal, where actual bank account details are entered. Decentro, however, cannot customize the NPCI screen.

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

NACH supports registration up to 1CR.

9. In what ways can a payer register a mandate?

Decentro powers ENACH through the below modes of authentication.

Debit Card
Netbanking

Decentro is also working on the Aadhaar-based mandates, which will be rolled out shortly.

10.What does cancellation of a mandate mean?

Cancellation of a mandate results in the entire mandate being canceled and all subsequent presentations getting blocked. Cancellation can only be made by the payee, typically in lending-related usecases. Cancellation of a mandate cannot be undone, and the payer needs to register a new mandate.

11.What does amendment of a mandate mean?

Amendment of a mandate is done if there’s any change in the parameters like amount, frequency, date, etc. This is done in case there’s any change in the loan amount, tenure, etc. Amendment of a mandate requires the payer to go through the same experience as the registration flow.

11.What does the "Fixed" amount rule mean for mandates?

The "Fixed" amount rule means that the debit amount must be exactly the specified amount. The system will not allow debits that are more or less than this specified amount.

11.What does the "MAX" amount rule mean for mandates?

The "MAX" amount rule means that the debit amount can be less than or equal to the specified amount, but it cannot exceed the specified amount. This provides flexibility for debiting up to the specified limit.

Presentation

1. How do we handle Adhoc presentations using NACH?

NACH - 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 per the business requirements.

2. Can NACH facilitate instant settlements?

No. Unlike UPI or IMPS, NACH is designed to facilitate recurring payments of higher value. The payments take one working day to reflect in the credit account.

3. Can we present different amounts for each presentation?

Yes. Decentro allows the platform to present different amounts for each presentation if the mandate is registered with the amount type as 'Maximum.'

4. Can Decentro settle into any bank account after the presentation?

Decentro settles the funds to the relevant beneficiary based on the use case, which the platform will share before going live and after Decentro has approved the same after its due diligence.

5. Can Decentro settle to multiple bank accounts at an execution level?

Yes. Decentro allows the platform to settle funds into multiple bank accounts. However, this will be subject to the use cases and must comply with the guidelines.

6.Does the platform need to trigger any pre-debit notifications through Decentro?

No. ENACH/NACH requires the client to inform the payer of the debit at least 24 hours before the actual debit. This can be undertaken by the platform by communicating to the payer through SMS and/or email or any other standard modes of communication like Whatsapp or in-app notifications.