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 customer bank accounts. Cashfree's eNACH solution enables businesses to create fast and secure digital mandates and collect large recurring payments, with authorization for auto-debit from customer bank accounts up to ₹1 Crore across 50+ banks.
| Feature | Description |
|---|---|
| Mandate Creation Time | 24 hours |
| Transaction Limit | Up to ₹1 Crore |
| Bank Integrations | 50+ banks |
| Mandate Activation | Within 1 to 2 days |
| Success Rate | ~98% on subsequent EMIs (excluding business declines) with payment retries |
eNACH is ideal for higher transaction values including:
Businesses can leverage eNACH to:
Authorize future payments by creating e-Mandates that get activated within 1 to 2 days and automate all future debits.
Manage all subscriptions from Cashfree's easy-to-use subscription dashboard and get actionable insights from detailed subscription and payment reports.
Migrate mandates easily from existing payment providers to provide a seamless subscription experience to customers.
Get settlements as soon as customers make payments. Eliminate the usual T+2 day cycle and get access to 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.
Cashfree Payments ensures that all UPI authentications initiated and auto-debits processed are as per latest government guidelines. The company maintains RBI compliance:
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.
Set and authorize e-Mandates on KYC verified bank accounts and curate uninterrupted investment experience for customers.
Offer custom insurance plans and set up eNACH based e-Mandates for collecting premiums on a monthly, quarterly, half-yearly or yearly frequency.
Increase retention by 3X with one-time authorization on eNACH. Create subscription plans to provide learners with flexible learning options and budget-friendly EMIs.
Grow business by creating custom payment plans for products/services. Auto-deduct payments via e-Mandate on-demand, based on service usage or debit the amount periodically.
Collect rent for housing and office rentals, co-working and co-living spaces, and other rental facilities with the ease of subscriptions.
In the event of payment failures for any reason, businesses can attempt the payment again to ensure high success rates and uninterrupted cash flow.
Use either Cashfree checkout page for quick implementation or create a customized checkout experience with your own brand elements using Cashfree's Seamless APIs.
Ensure SEBI compliance with Cashfree's Third Party Validation, which verifies if the bank account is KYC-verified at the time of mandate creation.
Create and manage subscriptions in bulk directly from the dashboard or with Cashfree's extensive subscription APIs.
Cashfree helped Faircent, a P2P lending platform, achieve significant improvements:
"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."
Result: Reduced loan recollection time by 87.5%
The customer pays a pre-decided amount at regular intervals for the subscription service. Examples include loan repayments and insurance premiums.
Set and authorize e-Mandates on KYC verified bank accounts and curate uninterrupted investment experience for customers.
Offer custom insurance plans and set up eNACH based e-Mandates for collecting premiums on a monthly, quarterly, half-yearly or yearly frequency.
Automate recurring payments up to ₹15,000 by using UPI. Customers can activate the one-time UPI mandate from any of 20+ supported UPI apps.
Auto-debit configuration for customers who do not have access to net banking or a debit card through one-time physical signature approval.
Customers can enter credit or debit card details and give standing instruction (SI) for future automated payments. Businesses can collect recurring payments of up to ₹15,000 without 2FA/OTPs.
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.
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.
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.
With Cashfree, e-Mandates are activated within 1 to 2 days.
Cashfree supports all 50+ banks supported by NPCI for e-Mandate registration. You can find the list of supported banks at NPCI's website.
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.
Yes, you can modify the amount and payment frequency of e-Mandates from Cashfree's dashboard and send it to your customer for authorization. Once your customer authorizes the modified e-Mandate, the future payments would reflect the changes.
If the payment fails, the merchant can retry the payment again.
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.
If you are already a customer, you can reach Cashfree in the following ways:
If you are new or need help with implementation, pricing, or general support, contact Cashfree's experts through their contact sales page.
Collect recurring payments up to ₹15,000 instantly through mandates created via any UPI app. Reduce loss of revenue with 30% higher success rates on mandate creation.
Verify and onboard vendors, collect payments from customers, deduct commissions, and split payments between vendors or your own bank accounts.
Collect payments on your website or app. Verify account details before doing customer refund.
Make payouts to any bank account / UPI ID / card / AmazonPay / Paytm instantly even on a bank holiday.
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.