- Personal/Individual Loans
- Agriculture Loans
- MSME Loans
- Group Loan
NACH (National Automated Clearing House) is a funds clearing platform set up by NPCI (National Payments Corporation of India) similar to the existing ECS of RBI. NACH (Debit) & NACH (Credit) aims at facilitating interbank high volume, low/high-value debit/credit bulk transactions, which are repetitive/recurring in nature, electronically using the NPCI service.
Primarily there are two variants of NACH – NACH Debit & NACH Credit.
NACH Credit is an electronic payment service used by an institution for affording credits to a large number of beneficiaries in their bank accounts for the payment of dividends, interest, salary, pension etc. by raising a single debit to the bank account of the User Institution (Corporate registered for NACH Services).
NACH (Debit) facilitates the Corporate for collection of telephone / electricity / water bills, cess / tax collections, loan instalment repayments, periodic investments in mutual funds, insurance premium etc., that are periodic or repetitive in nature and payable to the User Institution (Corporate registered for NACH Services) by a large number of customers etc.
NACH Debit is a Mandate based debit service. Following are the key features of the NACH Debit:
The mandate is a one-time registration process. It is just an authorization to your bankers to debit your account with a fixed amount or up to a certain limit as per the frequency given by you in mandate form.
UMRN - UMRN is a Unique Mandate Reference Number allocated to each new mandate created in NACH Debit. It is auto-generated by the NACH system during mandate creation. UMRN is mandatory for every transaction and even during mandate amendment and cancellation.
Please submit the duly filled and signed NACH Mandate form to your TNGB Branch. The branch will get the mandate approved by your Bank through an internal process. Once the mandate is approved, the loan instalments will start deducting from your account on the date/ frequency mentioned by you in the Mandate form. Normally it takes T+5 days from the approval of the mandate, but it may take a longer time in some cases because of the involvement of various stakeholders. Hence, it is advised to submit a mandate at least 15 days prior to the due date of the loan instalment.
Yes. You can modify the details registered for NACH by filling out the Mandate form and ticking the option as `Modify`. You can also cancel NACH registration by filling out the Mandate form and ticking the option `Cancel`.
No, you need not fill mandate form again. The existing mandate will continue to be valid for NACH services.
Sponsor Bank is the Bank, who lodges/initiates NACH Transaction files for collection/ distribution of funds on behalf of their Corporates registered for NACH services. In the case of loan EMI, the Bank acts as a User Institution as well as Sponsor Bank.
The Bank responsible for processing of Inward NACH file is known as ‘Destination Bank’.