eNACH by Cashfree Payments - Streamline High-Value Recurring Payments

What is eNACH?

eNACH (electronic National Automated Clearing House) is a digital payment system built by NPCI (National Payments Corporation of India) that automates periodic or recurring payments with automatic debits from the customer account.

Cashfree's eNACH solution enables businesses to create fast and secure digital mandates and collect large recurring payments. With eNACH, businesses can authorise auto-debit from customer bank accounts up to ₹1 Crore across 50+ banks.

Key Features and Capabilities

Core Features

Feature Description
Mandate Creation Time 24-hour mandate creation; e-Mandates activated within 1 to 2 days
Transaction Limit Up to ₹1 Crore per transaction
Bank Coverage 50+ bank integrations supported by NPCI
Success Rate ~98% success rate (excluding business declines) on subsequent EMIs with payment retries

Quick and Seamless Mandate Creation

Authorise future payments by creating e-Mandates that get activated within 1 to 2 days and automate all future debits.

Easy Subscription Management

Manage all your subscriptions from Cashfree's easy-to-use subscription dashboard and get actionable insights from the detailed subscription and payment reports.

Import Mandate

Migrate mandates easily from your existing payment provider to provide a seamless subscription experience to your customers.

Direct Settlements

Get settlements as soon as your customer makes the payment. Do away with the usual T+2 day cycle and get access to your funds instantly.

Note: Settlement cycle is subject to bank approval and can vary based on transaction type, business category/model, risk parameters and other factors.

Why eNACH is Important for Businesses

The eNACH solution is ideal for higher transaction values including:

Business Benefits

Security and Compliance

RBI Compliance

At Cashfree Payments, all UPI authentications initiated and auto-debits processed are as per latest government guidelines.

Regulatory Authorizations

Advanced Features

Payment Retries

In the event of payment failures for any reason, you can attempt the payment again to ensure high success rates and uninterrupted cash flow.

Customisable Checkout Experience

Use either Cashfree checkout page for quick implementation or create a customised checkout experience with your own brand elements with Cashfree's Seamless APIs.

Third Party Validation

Ensure SEBI compliance with Cashfree's Third Party Validation, which verifies if the bank account is KYC-verified at the time of mandate creation.

Bulk Subscription Creation

Create and manage subscriptions in bulk directly from the dashboard or with Cashfree's extensive subscription APIs.

Industry Use Cases

NBFCs and Digital Lenders

Reduce loan defaults and late repayment by setting up auto-debits via eNACH. Leverage ~98% success rate (excluding business declines) on subsequent EMIs with payment retries.

Mutual Funds and SIP Platforms

Set and authorise e-Mandates on KYC verified bank accounts and curate uninterrupted investment experience for your customers.

Insurance Providers

Offer custom insurance plans and set up eNACH based e-Mandates for collecting premiums on a monthly, quarterly, half-yearly or yearly frequency.

EdTech Companies

Increase retention by 3X with one-time authorisation on eNACH. Create subscription plans to provide your learners with flexible learning options and budget-friendly EMIs.

SaaS Businesses

Grow your business by creating custom payment plans for your product/service. Auto-deduct payments via e-Mandate on-demand, based on service usage or debit the amount periodically.

Rental Services

Collect rent for housing and office rentals, co-working and co-living spaces, and other rental facilities with the ease of subscriptions.

Case Study: Faircent

How Cashfree Helped Faircent Reduce Loan Recollection Time by 87.5%

Faircent, a P2P lending platform, achieved significant improvements using Cashfree's eNACH solution:

Results Achieved:

Customer Testimonial:

"We are one of the early customers of Cashfree's Subscription suite. From the very beginning, Cashfree has been a solid 10/10 in onboarding and support. With Cashfree Subscriptions, the ease of loan disbursals, loan recollection and faster settlements have directly contributed to increased customer satisfaction for Faircent's lending platform."

Recurring Payment Models

Fixed Model

The customer pays a pre-decided amount at regular intervals for the subscription service. For example, loan repayments and insurance premiums work on fixed models.

Usage Based Model

Set and authorise e-Mandates on KYC verified bank accounts and curate uninterrupted investment experience for your customers.

Hybrid Model

Offer custom insurance plans and set up eNACH based e-Mandates for collecting premiums on a monthly, quarterly, half-yearly or yearly frequency.

Platform Features

Onboarding and Integration

Additional Recurring Payment Options

Enable your customers to handle recurring transactions with ease using the widest range of recurring payment stacks, in addition to eNACH:

UPI AutoPay

Automate recurring payments up to ₹15,000 by using the most popular payment method in India - UPI. Customers can activate the one-time UPI mandate from any of 20+ supported UPI apps.

Physical Mandate

Auto-debit is possible to configure for customers who do not have access to net banking or a debit card through one-time physical signature approval.

SI on Cards (Standing Instructions)

Customers can enter credit or debit card details, give standing instruction (SI) for future automated payments. Businesses can collect recurring payments of up to ₹15,000 without 2FA / OTPs.

Frequently Asked Questions

What is the difference between eNACH and e-Mandate?

A mandate is a contract between you and your customer that allows you to deduct funds from your customer on a pre-decided frequency with a pre-decided amount. e-Mandate, or electronic-Mandate is the online version of mandates where you can create, edit and delete the mandates online. e-NACH, short for Electronic National Automated Clearing House, serves as the framework that facilitates the processing of e-Mandates within India. This automated payment system enables smooth, digital, and recurring transactions up to ₹1 crore.

Is there any eligibility criteria to create e-Mandates?

e-Mandates can be created for any customer who has an active bank account. The e-Mandates can be activated either with the customer's net banking details, Aadhar card or credit/debit card.

What is the difference between the two authentication modes - "Net banking" and "Debit card" under eNACH payment mode?

The corresponding bank authenticates the end-customer by asking them to enter their net banking credentials or their debit card credentials. Here, the debit card credentials are only used to authenticate the customer. This ensures that the e-Mandate transactions are uninterrupted even in the case of debit card expiry during the mandate tenure.

How long does it take to activate e-Mandate for a customer?

With Cashfree, e-Mandates are activated within 1 to 2 days.

Which banks support eNACH payment mode?

Cashfree supports all 50+ banks supported by NPCI for e-Mandate registration. You can find the list of supported banks at NPCI's website.

Can I delete/cancel the e-Mandate?

Yes, the e-Mandate can be cancelled by raising a request with the bank. As soon as the bank approves the cancellation request, the e-Mandate is revoked. However, in case of mandates on loan repayments and EMI, mandates are non-revocable as per RBI guidelines.

Can I modify the amount or the payment frequency of an active e-Mandate?

Yes, you can modify the amount and payment frequency of e-Mandates from Cashfree's dashboard and send it to your customer for authorisation. Once your customer authorises the modified e-Mandate, the future payments would reflect the changes.

What happens if the payment fails for some reason?

If the payment fails, the merchant can retry the payment again.

What is a Utility Code? Is it mandatory to mention the Utility Code in the mandate?

Utility Code or Corporate User ID is a User Identification Number that is allotted by NPCI. The Utility Code helps to identify the business in whose favour the mandate is being issued. A mandate request cannot be initiated without a Utility Code in the Mandate Management System.

I have more questions. Where can I reach out?

If you are already a customer, you can reach us in the following ways:

If you are new here, or need help with implementation, pricing, or general support, get in touch with our experts through the contact sales page.

About Cashfree Payments

Cashfree Payments enables 1 Million+ growing businesses in India and across the globe to collect payments, make payouts, manage international payments, and more. Cashfree Payments is backed by SBI, Y Combinator, Krafton, and Apis partners and was incubated by PayPal.

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