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The NACH (National Automated Clearing House) mandate charge is the amount NPCI charges towards completing a transaction. NACH was introduced by the RBI (Reserve Bank of India) to function as a centralised interface that allowed repetitive, bulk money transfer, irrespective of geographic distances. NACH is useful for timely salary disbursal, EMIs payments, auto-debit payments, pensions, subsidies, interests, dividends etc.
NPCI or the National Payments Corporation of India operates and monitors the NACH framework. NPCI charges a nominal amount from banks and financial organisations in lieu of the service. The charge depends on the transaction volume. In case of any changes to it, a circular is issued. The common charges levied by the NPCI are mentioned below. Do note that in the case of Income Tax refunds, NACH mandate charges are not applicable.
1) Processing Fee and Incentive for Credit Transactions (Direct Benefit Transfers (DBT))
Product |
On- us |
Off- us |
---|---|---|
Aadhaar based transactions- Credit |
₹0.15 |
₹0.40 |
ACH credit |
₹0.15 |
₹0.40 |
In case of Off-us transactions, the interchange of ₹0.25 will be passed on to the destination bank. The NPCI charges are ₹0.15 (off-us) and ₹0.15 (on-us). Charges are applicable irrespective of acceptance or rejection by the destination bank.
2) Processing Fee for Credit Transactions (Other than DBT)
Product |
On- us |
Off- us |
---|---|---|
Account-based- ACH credit |
₹0.05 |
₹0.45 |
In case of Off-us transactions, the interchange of ₹0.25 will be passed on to the destination bank. The NPCI charges are ₹0.20 (off-us) and ₹0.05 (on-us). Charges are applicable irrespective of acceptance or rejection by the destination bank.
3) Processing Fee and Penalty on Debit Transactions
Product |
On- us |
Off- us |
---|---|---|
ACH Debit |
₹0.05 |
₹0.70 |
NACH Debit |
₹0.05 |
₹0.70 |
In case of Off-us transactions, the interchange of ₹0.50 will be passed on to the destination bank. The NPCI charges are ₹0.20 (off-us) and ₹0.05 (on-us). Charges are applicable irrespective of acceptance or rejection by the destination bank.
NACH bank charges depend on the bank’s terms of service and its agreement with NPCI. You can contact your bank and know the details. Some of the top banks offering NACH services are State Bank of India (SBI), Citibank, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, etc. The amount charged by these banks is listed below:
Bank Name |
Details |
Amount |
---|---|---|
Axis Bank |
ECS/NACH transaction fee per transaction |
₹25 (max- ₹100/month) |
SBI |
One time Mandate Authorisation Charges per mandate |
₹50 + GST |
HDFC Bank |
One time Mandate Authorisation Charges per mandate |
₹40 ₹36 for Senior citizen |
Kotak Mahindra Bank |
One time Mandate Authorisation Charges per mandate |
₹50 |
ICICI Bank |
One time Mandate Authorisation Charges per mandate |
₹50 |
NACH is useful for individuals, corporations, the government sector, non-banking financial organisations, and banks. It reduces the time taken in processing money and settling bills and makes the process safer. NACH is used in the following scenarios:
NACH is quite useful when it comes to the bulk processing of transactions. It saves time, effort, paperwork and the process is also highly secure and user-friendly. With the help of the NACH mandate, it’s become easier to avail loans online. If you are looking for a low-interest personal loan, then Bajaj Markets has got some attractive loan options with flexible repayment. You can also apply for a credit card on the portal from some of the top banks in the country.
You can track your PAN NSDL details at https://tin.tin.nsdl.com/pantan/StatusTrack.html.
t costs 1020.00 [(Application fee 93.00 + Dispatch Charges 771.00) plus 18.00% Goods & Services Tax] to process an NSDL PAN application.
Also known as direct deposit, ACH transfer is the way to send money from one bank account to another using the NACH network. Once the sender makes a request, the transaction is initiated and money is transferred to the other bank account. ACH stands for Automated Clearing House. Nominal NACH mandate charges are applicable in ACH transfer.
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