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Banking Insight

NACH Cancellation

Pradnya Ranpise Posted on May 07, 2025

Table of Content

For NACH to work, you must first register the mandate, which means authorising the institution to debit or credit money from/to your account. In certain instances, you may want to initiate NACH cancellation. It is not just needed for loans but also for any other service in which money is automatically debited from your account by an institution.

How to Cancel NACH Mandate

The cancellation process of a NACH mandate is straightforward. If you need to withdraw or cancel a mandate, you can request it from your financial institution.

You can also remove the mandate/debit instructions from your bank directly. In such instances, your withdrawal instructions would be considered a ‘Stop payment’ instruction in the cheque-clearing system.

The RBI has publicly stated that you could approach your bank or other institution to which you have provided such NACH mandate. These include the following institutions:

Lender of your bank
Electricity board
Mutual fund company
Water board
Any other organisation authorised to collect the money from your account

You can initiate the process of NACH cancellation online for some banks, stock brokers as well as mutual fund companies. However, some financial institutions do not allow you to cancel the mandate online. In this case, approaching your bank and opting for NACH cancellation is the best option.

How to Fill the NACH Mandate Cancellation Form

These are the set of instructions to be followed to fill out the NACH mandate cancellation form:

Fill in the date in the format DD/MM/YYYY
Select the appropriate checkbox to create, edit, or cancel the mandate
Check the appropriate box according to the type of bank account you maintain
Enter your bank account number
Enter the name of the destination bank
Fill in the respective IFSC/MICR code
Mention the amount of the mandate
Select the frequency of the mandate

Further, the following checks are also important:

Choose whether the mandated amount is a fixed or a maximum amount
Mention the Folio Number as Reference 1
Mention the Application Number as Reference 2
Provide your telephone number (Optional)
Provide your Email ID (Optional)
Provide the start and end dates of the NACH registration (Format: DD/MM/YYYY)
Leave the start date blank and choose ‘Until cancelled’ if you opt for a perpetual SIP
Provide signature as per bank account
Mention the holder’s name as per the bank record

NPCI Rules and Guidelines Regarding the Cancellation

Now that you know how to cancel the NACH mandate, here are some guidelines:

Verify your identity by using a login ID and password, an OTP, and other information
View a list of registered mandates for your customer ID
You can select which mandates you want to cancel, but cancellation requests will only be allowed after verification
A pop-up message will appear to confirm the cancellation request, and if you agree, the financial institution will proceed with the cancellation
The financial institution will send an SMS to your registered number regarding the initiation of the NACH cancellation
Once approved, it will prepare and submit the cancellation file via their sponsor bank on the same day
After obtaining the final response from NACH via the sponsor bank, the financial institution will update you on the cancellation request
Upon confirmation of mandate cancellation, the entity will send you an SMS confirming the cancellation
The financial institution will update its records and stop displaying transactions for your cancelled mandates

Frequently Asked Questions

What is the NACH cancellation request?

A NACH cancellation request is raised to stop all the auto-debits from the account. You can submit a request online to cancel automatic payment of all recurring bills, EMIs, insurance premiums, etc.

When can a customer cancel a NACH?

You need to cancel the NACH mandate in cases where you want to halt the automatic debit of money from your accounts, such as EMI payments to banks or utility bills.

Are there any fees for NACH cancellation?

Yes, you need to pay a processing fee for NACH cancellation. It is best to check with your bank for the details.

How to cancel my NACH mandate?

You can cancel the NACH mandate by filling in the NACH cancellation application form and submitting it to your destination bank or the NACH mandate provider.

Hi! I’m Pradnya Ranpise

Blogger

Pradnya has over 5 years of experience in content marketing, with certifications from both SEMrush Academy and HubSpot Academy. Having worked across multiple industries, she has now honed her focus on the finance sector, covering topics such as insurance, loans, investments, and payments. She is known for breaking down complex financial topics into simple, clear content that empowers readers to make informed decisions.With a genuine passion for helping people understand their finances, Pradnya’s expertise shines through her work, as she delivers trustworthy, authoritative content backed by real industry knowledge.