eNACH: The Future of Digital Payments Explained

Waseem Jalal

As the digital transformation in India has been consistent for a while, the government has introduced a lot of digital services to accommodate the demand. One among those services is eNACH. It is a process where the payments are to be collected electronically from the customer’s bank account. It makes use of the NACH (National Automated Clearing House) system. 

There are several instruments, such as insurance premiums, loan interest, SIP and others, that demand consumers to make periodic payments. In the past, people used to stand in queues to process these recurring payments, which was a tedious approach. But, with the collective collaboration of NPCI and RBI, the paper NACH process was upgraded to eNACH

Let’s find out how eNACH is potentially the future of digital payments. 

Checkout  How Technology Can Revolutionize Your Payroll Management

Who Makes Use of eNACH Solution?

It is used by service providers and businesses for collecting recurring payments from consumers, such as loan EMIs, utility bills, subscription fees and insurance premiums. Automating the payment collections is a convenient approach, which will reduce the overall transaction fees and will minimise the payment default rate. 

NPCI has a list of more than 40+ banks that support eNACH Registration. When you are registering from the eNACH, the users will have to integrate their savings account with a periodic debit facility. The eMandates will be integrated, where the customers will give their consent for automating the money debits from their account for several purposes. 

The Benefits of Integrating eNACH for Businesses!

There are a lot of benefits associated with that eNACH for both customers as well as merchants. So, let’s get an insight into them all for a better understanding of eNACH’s capabilities:

Checkout  What is consumer banking and commercial banking?

For Merchants:

1. Increased Customer Retention

As eNACH enables the customers to implement just a one-time registration, the merchants can easily auto-debit from their savings accounts. Thus, it will reduce the overall burden of the consumer for manually processing recurring payments every month. The customers will get to use the services or products without a hassle. 

2. Administrative Costs are Reduced

The cost of the administrative work will reduce, and there is no need to chase delayed payments or frequent invoicing. Accounting will become easier as all the processes are digitalised. 

For Customers:

1. Payment Becomes Seamless

Once the eNACH registration is done, payments will be automatically set at particular intervals. It will save you a lot of effort and time. 

Checkout  Advantages of Putting Resources into Common Assets: An Insightful Decision for Monetary Development

2. Simple Authentication

It is quite easy for the customers to authenticate themselves for eNACH. All they will need is their banking credentials. 

3. Faster Activation

The eNACH facility gets activated within one day, making it a better alternative than the ECS, which takes around 30 days to activate. 


Thus, eNACH is considered the future because a lot of industries are adopting the ease of its use. A lot of business models have already integrated it, which includes OTT media service providers, SaaS companies, utility billers and others. The end purpose of eNACH is to suppress the burden exerted on the destination bank. 

Sharing Is Caring:
Heat Caster - Best Quotes Having Attitude Status

Leave a Comment

Heat Caster

Welcome to Heat Caster, your number one source for all sorts of captions/quotes/status. We're dedicated to providing you the very best of Lines, with an emphasis on attitude and personality.

Contact Info