What is NACH Mandate | Types of NACH Mandate

Have you ever used the magical system of automating your entire bill payments, including SIPs? If yes, then you must be familiar with the term – NACH.

There is a significant growth in the modes of payments available these days in India. One of the payment methods available in India is the NACH mandate. The full form of NACH is the National Payments Corporation of India. 

National Payment Corporation of India provides the facility to banks, financial institutions, Government and Corporate the services – and it is called the National Automated Clearing House. 

The purpose of NACH is the facilitation of interbank lower or higher volume credit or debit transactions, which are repetitive in nature. 

There are basically two types of NACH mandate that are available in India, such as: 

NACH debit facility is used for the collection of payments such as power bills, mutual funds and more. 

The NACH Credit facility is employed to hand out dividends, interest, and salaries. 

Also, Read This: ECS Mandate & NACH Mandate Form Download

NACH mandate management system is a service provided by NACH debit to deal with mandates of clients. It lets you manage, make changes and cancellation of payment mandates super easy.

You are now well-versed with the concept of the National Automated Clearing House (NACH). It is being hoped that you will be able to utilize the facility of NACH as per your preferences of debit and credit.