NACH Mandate Charges Explained

Managing your loan EMIs, SIPs, and utility bills every month may feel overwhelming. After all, it’s not easy to remember every payable and make payments on time. This is where the NACH (National Automated Clearing House) mandate can be a game-changer.

NACH mandate can help you to streamline your recurring payments. It allows your bank to deduct such payments from your account without your intervention.

The process involves registering for a NACH mandate and paying processing fees. Let us understand NACH mandate charges in detail. 

What are NACH Mandate Charges?

Suppose you set up the NACH mandate for your car loan EMI of ₹12,000 per month on the 5th of every month. Your bank will withdraw ₹12,000 from your account on the 5th of every month to make this payment. 

When you set up a mandate and allow your bank to debit your account for a payment, you must pay a fee for using this system. 

NACH mandate charges are the fees you must incur for processing and authorising payments using this system.

These charges may vary based on your bank, transaction type, and volume.

What are NACH Mandate Registration Charges?

NACH mandate registration is the basic step that allows your bank to automate recurring payments. Registering for a NACH mandate involves the following steps-

• Select the service for which you want to automate payments
• Open the NACH mandate registration page provided by your service provider
• Enter your bank details and verify through OTP authentication
• Review the amount, validity period, and frequency before approval
• Your bank verifies and activates the mandate after security checks
• Payments get debited on due dates automatically

Your bank charges a one-time registration fee to activate the NACH mandate. The amount may range from ₹50 to ₹200, plus GST.  

With Hero FinCorp, you do not need to pay NACH mandate registration charges. However, you must still pay transaction fees for your NACH mandate.

The transaction fee is the charge you pay for automating payments. While the registration fee is applicable only once during the mandate setup, the transaction fee applies to every transaction. You must pay this charge whenever you process a payment through a NACH mandate.

Bank Charges on NACH Mandate Transactions and Failures

Banks implement NACH mandate charges to process and verify your mandate for automatic debits from your account. If a mandate fails due to insufficient balance, your bank will impose a penalty and debit the amount from your account. 

Repeated mandate failures can negatively impact your credit score and result in higher penalties from your bank. 

The penalties or return charges for a mandate failure vary by bank and account type. Some banks also add applicable taxes to the penalty. You must verify with your bank for the latest charges.  

The table below shows typical bank charges on NACH mandate for failed transactions due to insufficient balance- 

Mandate Verification Charges

Some banks apply mandate verification charges at setup. It is a one-time charge for validating a mandate. The typical cost for mandate verification ranges from ₹50 to ₹200. 

You can avoid such NACH mandate charges by choosing a bank that waives this fee. Some banks that don't charge any mandate verification fee include Bandhan Bank, IDFC Bank, ICICI Bank, Yes Bank, and IndusInd Bank. 

NACH Mandate Charges Policy

When you want to manage payments without constant reminders, a secure digital NACH mandate becomes essential. Hero FinCorp NACH mandate charges policy enables you to manage recurring payments seamlessly. You can pay EMIs and bills conveniently without the hassle of making manual payments.

With competitive pricing and no hidden NACH mandate charges, Hero FinCorp’s policy benefits customers by offering simple digital processing, smooth service, and timely payments.

How to Register for NACH Mandate

Hero Fincorp offers a quick and simple process for NACH mandate registration. By activating NACH mandates, you can enjoy the benefits of automated payments, avoid late payment fees, and build your credit score. 

Wondering how to register a NACH mandate through Hero Fincorp? Here’s what you need to know-

1. Details Required for NACH Registration 

• Bank account details
• Internet banking login credentials or debit card details 
• Registered mobile number to receive OTP for confirmation and authentication

2. Documents Required

• Duly filled electronic NACH mandate form
• Bank account
• Aadhaar card

You can register for the NACH mandate online through Hero Fincorp’s platform. Once you submit the digital registration form, your bank will verify the details and activate the mandate. It takes about two to three business days for mandate activation. 

Want to streamline loan payments? Choose a Hero FinCorp personal loan that enables hassle-free EMI payments through NACH mandates.    

If you need assistance with the digital loan process or NACH mandate registration, you can easily contact the Hero Fincorp support team. They are available via phone and email.  

Check out Hero's personal loan app for a paperless loan process today. 

Frequently Asked Questions

1. What happens if a NACH mandate transaction fails?

A failed NACH mandate transaction usually results in penalty charges from your bank.

2. Are there any hidden or extra charges on NACH mandates?

Hero FinCorp imposes no hidden or extra charges on NACH mandates.

3. How can I cancel or modify a NACH mandate registered?

Log in to your net banking account, navigate to the NACH mandates section, select the mandate, and choose cancellation or modification.

4. Can I register multiple NACH mandates simultaneously?

Yes, you can register multiple NACH mandates simultaneously.

5. How long is a NACH mandate valid?

A NACH mandate can remain valid for 40 years from the date of activation. 

6. Does Hero FinCorp charge for mandate verification?

Hero FinCorp does not charge for mandate verification.

Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.