6th September, 2013

NACH Debit & Its Unique Features

NACH-DR is the product of NPCI to provide a better & efficient Mandate based debit
services to the banks.

Automated processing and exchange of mandate information electronically with welldefined timelines for acknowledgement/confirmation.

Each mandate needs to be accepted/authorized by the debtor bank before the User can
initiate a transaction

Each mandate is uniquely identified by Unique Mandate Reference Number (UMRN)

which makes tracking of multiple mandate details easier for customers.

MMS would allow processing of debtor and creditor initiated mandates.

MMS would allow processing of e-mandates as well as paper mandates, where emandates would consist of only data file upload while paper mandates would consist of
mandate image and Data file uploads. E-mandates can be initiated only by a debtor
bank.

Bank can leverage on the existing CTS instrument scanning infrastructure for scanning
and maintaining repository of the mandates images

NACH Debit - Benefits for banks

Standardization and digitization of mandates

Simplification of the mandate acceptance and recording process

Will result in reduced operational cost for the banks and its clients

Will result in higher revenues for the banks and its clients as the scope of
services expand pan India - beyond the 90 Clearing centres

Complete audit trail of the mandate during its lifecycle

Unique identifier number allocated to each mandate (UMRN)

Secure web access for file upload/download, dissuading the concept of

regional NCC/Clearing House submissions

Mandates can be processed by the member for any branch across the
country

Allows Corporate clients to directly upload files for approval (DCA)

Functions on International Messaging Standard - ISO 20022

Minimal time taken to activate the Mandate same day processing possible

High value transaction accepted

Mandate Management System

Mandate initiation through Sponsor Bank:

Mandate Information update with UMRN

Mandates sent
to Sponsor Bank

Customer

Sponsor
Bank

Corporates
Mandate
initiation by
customer

At Sponsor Banks back

office, mandates are
scanned using CTS
infrastructure,
Scanned mandate images
along with data files send
to Destination Bank via
NPCI.

7
8
Sponsor
Bank update
Corporates

UMRN

is generated at NPCI end.

N
A
C
H
NPCIs purview

5
Destination Bank

6
Destination Bank
sends verified
mandate details
to Sponsor Bank
through NPCI &
update their
records

Mandate initiation through Destination Bank:

Verification &
forwarding the
data to Sponsor
Bank via NPCI .
Mandate Initiation by
Customer
1

IVR

Customer

Internet

Destination
Bank

Paper
8

Customer
update
with
UMRN

NPCIs purview

UMRN

N
A
C
H

is generated at NPCI
end.
Verified
mandate
data with
UMRN

Verified
mandate
information
with UMRN
sent to
Corporates

Sponsor
Bank

Database
update &
sending
confirmation
response

Corporates

Database
update &
sending
confirmatio
n response

Mandate Processing

Pain009

User

Pain010

Uploads
Mandate
Creation File

User

Downloads Data
& Image
Mandate file

Uploads
Mandate
Amendment File

MMS Process
Validation & Generation
of UMRN

ACK/NACK
Pain011

Uploads
Mandate
Cancellation File

ACK/NACK

Creates
Mandate
Acceptance
Report

Sends Mandate
Acceptance
Report

Uses GUI for

Single Mandate
Pain012

Pain012

NACH Debit File Processing

RTGS
Uploads
Input File

User

Yes

Valid
file

Inward File
Downloaded

Yes

ACH Clearing
& Settlement
Process

User

Uploads
Return File

ACK msg
No

NACK msg

ACK /
NACK
msg

Transactions
Rejected

Yes

Output File
Downloaded

Valid
file

Yes/No

Black and White Image:

Front Grey Scale Image:

Mandate Validation Concept:

Field Mandate management to be hosted by NPCI on optional basis

Key Mandate variables will be stored and validated at the transaction leg

Bank gets a simple debit request

Fields proposed to be validated at NPCI

UMRN Active/Non-Active
Customer Account Number
Destination Bank IFSC/MICR
Amount
Maximum Amount
Start Date
End Date/Until cancelled
Proposed to be implemented in mid of September 2013

If the input transactions fails above validations, NPCI will reject those
transaction at Sponsor Bank end itself.

Operations timelines Mandate Management

Start of Day (SOD)

10:00 AM all days

Mandate Request Cut-off (MRC)

Weekdays: 10:00AM to 12:30PM

Saturday : 10:00AM to 11:30PM

Mandate Acceptance Report Cutoff (MARC)

Weekdays: 12:30PM to 05:00PM

Saturday : 11:30AM to 03:00PM

End Of Day (EOD)

Weekdays : 05:00PM
Saturday : 03:00PM

11

Operations timelines for NACH - Debit

Weekday Presentation
Saturday Presentation
Weekday Return
Saturday Return

Presentation and Return Timings

Weekdays
Presentation: 10:00-12:30 hrs
Saturdays
Presentation: 10:00-11:30 hrs
Settlement Timings
Weekdays
Presentation Settlement: 13:00-14:00 hrs
Saturdays
Presentation Settlement: 12:00-13:00 hrs

Return: 1500-1700 hrs

Return: 14:00-15:00 hrs

Return Settlement: 17:30-18:30 hrs

Return Settlement: 15:30-16:30 hrs

12

Technology Requirements for NACHDebit/ Mandate Management System

13

As a Sponsor Bank:
Utility/ application for viewing scanned mandates that you would
send to destination bank.
System/hardware to scan mandates .
Data entry mechanism for mandates into your core
system/intermediary application.
Corporate/ customer user name and user number- Form to be
submitted by sponsor bank and then processed by NPCI.

Utility for Generation of XML file for inputting mandates.

Utility for Generation of NACH-DR transaction file.
Utility to store mandates accepted by destination bank.

14

As a Destination Bank:
Ability to store/record details of mandates raised by sponsor
bank (through a utility/ application)
Ability to accept /reject mandate raised by sponsor bank, after
verifying the mandate information/details , as raised by sponsor
bank.
Develop a Utility to run inward (INW) transaction files for NACHDR in the system.
Develop a Utility to upload Return file (RTN) for NACH-DR
transactions .

15

Thank You
ach@npci.org.in