e-NACH stands for Electronic National Automated Clearing
House.
Although electronic, ECS is still a majorly offline
process where physical documents are filed and checked
manually.
As long as the customer has an Aadhar-linked bank account
at a participating bank, they can avail of this service.
Private sector banks, including Axis Bank, Yes Bank, Kotak
Mahindra Bank and IndusInd Bank are active with e-NACH and
e-Mandates. In addition, Bank of Baroda, Central Bank of
India and Punjab National Bank are some public sector
banks offering the services.
Once you receive the inquiry form, you can initiate the
integration process with a click. Enter the details and
directly integrate. Once integrated, you can provide the
customer data and get the data processed.
Like any other transaction, the payment to the merchant is
declined if there are insufficient funds.
To cancel an e-Mandate, merchants can conveniently
navigate to the Cashfree Payments dashboard. Once there,
they have the option to cancel a customer’s subscription.
Additionally, they can choose to edit the subscription and
either upgrade or downgrade the selected plan. Whenever a
customer decides to cancel or edit their subscription
status, merchants will receive instantaneous notifications
through webhooks, keeping them informed in real-time.
The charges for e-Mandate creation with Cashfree Payments
are currently Rs. 5. Additionally, there is a charge of
Rs. 5 per debit made through the e-Mandate.
Merchants can offer three different types of subscription
models through e-Mandate:
-
Fixed Model: In this model, customers are required to
pay a predetermined fee for the subscription service
after a specific period. For example, a monthly
Netflix subscription might cost INR 300.
-
Pay per Consumption Model: With this model, customers
are charged based on their usage or consumption. For
instance, an electricity bill would depend on the
number of units consumed.
-
Hybrid Model: This model combines elements of both the
fixed and pay per consumption models. Customers may
need to pay a set price as well as an additional fee
based on their consumption. A private fitness trainer,
for example, might charge INR 1000 for 30 sessions and
an additional INR 400 per session beyond that.
One can easily authorize recurring payments by using their
Netbanking or Debit card credentials for a one-time
authentication to register the e-mandate with their net
banking details or debit card. Afterward, all subsequent
payments will not require customer intervention.
Customers can register, edit, and delete mandates entirely
online through the e-Mandate services introduced by NPCI.
An e-Mandate is an electronic version of a mandate, which
is a standing instruction given to the bank where a
customer holds their account to debit a fixed amount to
another bank account automatically.
e-Mandate and eNACH are two distinct processes. While
e-NACH is governed by NPCI, e-Mandates are controlled by
individual banks.
