NPCI Cir No 8 – Mandate Duration and Mandatory Final Collection Date

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 NPCI Cir No 8 – Mandate Duration and Mandatory Final Collection Date

         The NACH service streamlines the electronic automation of high-frequency, low-value debit and credit transactions between banks using the NPCI platform, making these routine transactions more efficient.



         NPCI Nach Team has released a circular specifying the Mandate Duration and Mandatory Final Collection Date. 

         The highlights of the Circular are as below:

         Highlight No 1) Mandate duration can be 30 years from the Mandate Issuance Date. The appropriate validations will be built at NPCI end.

         This means the Destination banks will receive mandates only if the gap between the Mandate Issuance Date and Mandate End Date is 30 years or below 30 years.

         As of now, penalty amount for breaching this guideline is not included in the Circular No 8.

Highlight No 2) Mandate End Date is mandatory. The option of ‘until cancelled’, will be removed from 1st October 2023.

         These changes will be applicable for Physical as well as Electronic Mandates.

         The effective date of the circular is 1st October, 2023.

         This should be sufficient for all the stake holders to make the necessary changes are their end.

The NPCI NACH system, also known as the National Payments Corporation of India's National Automated Clearing House system, is a centralized platform in India that enables electronic clearing and settlement of high-volume, low-value transactions between banks.

This system automates routine debit and credit transactions, making the process faster and more efficient.

 

The National Automated Clearing House (NACH) system offers several benefits, including:

Efficiency:

Cost Savings:

Timeliness:

Convenience:

Accuracy:

Enhanced Security:

Scalability:

Financial Inclusion:

Transparency:

Environmental Impact:

Overall, NACH simplifies and improves the efficiency of financial transactions, benefiting both financial institutions and customers in various ways.

Disclaimer: These are my personal views only. The bottom line is Safe ePayments. Nothing More – Nothing Less.

 

Diabetes Care Motivator   #DiabetesCareMotivator

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