NACH is a web-based solution to help interbank, high volume, electronic transactions which are repeated and periodical. NPCI has set up a new mandate process, which is called – National Automated Clearing House or NACH. For controlling high volume regular transactions for Banks, Financial Institutions, Corporates and Government. This new mandate process (NACH) is now all set to replace the ECS in the future. Reserve Bank of India (RBI) has set up a new nodal authority – National Payments Corporation of India (NPCI) for managing all electronic payments in the banking operation.
Do you need to Amend/Change existing ECS?
The existing ECS mandates will continue to be valid in the existing ECS cycle. No changes will be made to your ongoing ECS. Once the tenure of current ECS mandate lapses and if you wish to renew the ECS or want to change the ECS to another Bank Account, you will have to fill in and submit a new NACH form.
Things to know about NACH
- From 1st May 2016, NACH has replaced ECS.
- New NACH form does not require bank attestation.
- NACH is a centralized process, whereas ECS is a zone-wise process.
- Use separate Form for Each LIC Policy.
- A Cancelled Cheque or Passbook Copy with Account holder Name, account no and IFSC code is required.
- You need to pay two premium for Monthly Mode Cases.
- Choose from 7th / 15th / 22nd / 28th Debit Date Options
- UMRN (Unique Mandate Registration Number) field should be left blank.
- For New Business Cases Policy Number & Amount will be filled by LIC India officials.
- Mobile Number of Customer is Compulsory.