BAJAJ FINSERV DIRECT LIMITED
Banking Insight

NACH Mandate Charges

authour img
Roshani Ballal

Table of Content

NACH Charges Meaning

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.

What are the NACH Charges?

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.

What are the Bank-wise NACH Charges?

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

Where is NACH Used?

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:

  • Mass Money Transfer: NACH mandate is a safe and traceable option for anyone who wants to make bulk transfers. The money gets processed real quick without the need for any tedious paperwork.
  • Salary Disbursal: It's estimated that more than 70% of transactions today are conducted online. Companies are increasingly relying on the NACH mandate to transfer the monthly salaries of their staff.
  • Enhanced Transparency: NACH has made money transfer and debits totally transparent and safe. Transactions occur within the NPCI firewall and you are notified about the transaction status at all times.
  • EMI Auto-Debit: Individuals can get their monthly EMI amount auto-deducted from their bank accounts on a certain date.
  • Instant Loans: Financial organisations that process loans online after quick document verification, leverage NACH services the loan amount within 1-2 working days.

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.

FAQs about NSDL PAN application

Nach Mandate Charges
How can I check my PAN NSDL details?

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.

View More
Author Image
Hi! I’m Roshani Ballal
Blogger

Roshani has over 6 years of experience and has honed her skills in performance content marketing in the financial domain. She loves diving into research and has crafted and overviewed creative copies, long-form financial content, engaging blogs, and informative articles. She specialises in delivering user-oriented content and solving problems through various content formats. On the side, Roshani enjoys writing poems-that's how she stays creative when she is not crunching numbers.

Academy by Bajaj Markets

alt 10754

All Things Tax

Navigate the tax maze with ease! Uncover Income Tax 101, demystify jargon with Terms for Beginners, and choose between Old or New Regimes.

Seasons 6
Episodes 25
Durations 1.3 hrs
alt 7268

All Things Credit

Unlock the world of credit! From picking the perfect card to savvy loan management, navigate wisely.

Seasons 12
Episodes 55
Durations 2.9 hrs
alt 1585

Money Management and Financial Planning

Money Management and Financial Planning covers personal finance basics, setting goals, budgeting...

Seasons 5
Episodes 18
Durations 1.1 hrs
alt 2881

The Universe of Investments

Explore the investment cosmos! From beginner's guides to sharp-witted strategies, explore India's treasure trove of options.

Seasons 5
Episodes 23
Durations 1.5 hrs
alt 144

Insurance Handbook

Discover essential insights on various types of insurance in India.

Seasons 2
Episodes 6
Durations 0.5 hrs
alt 1114

Tech in Finance

Welcome to Tech in Finance, where we explore the exciting intersection of technology and finance...

Seasons 1
Episodes 5
Durations 0.3 hrs
Home
Home
ONDC_BD_StealDeals
Steal Deals
Credit Score
Credit Score
Accounts
Accounts
Explore
Explore

Our Products