2. NACH Introduction & Salient Features
• NACH stands for National Automated Clearing House. It is a system set up by
NPCI (National Payments Corporation of India) in place of erstwhile ECS
(Electronic Clearing System).
• NACH mandate form should be collected from the customer and submitted
directly at the servicing Branch for both New Business and Alteration cases .
• The Customer is not required to get the mandate verified from his/her bank.
• Separate mandate form is required for each policy . This applies to the single
customer multiple proposal cases of NB also.
• For N B case with monthly mode, 2 premiums, other than premiums required
to take care of back-dating have to be paid.
• For existing policy, new NACH registration ( for alteration in mode of premium
payment from ordinary to NACH) or change in bank can be done at least 15 days
before FUP for monthly mode policy and 30 days before FUP for other modes.
3. NACH Introduction & Salient Features(Contd…..)
• Unique Mandate Ref. No. (UMRN) is allotted to each
mandate by the NPCI.
• Acceptance or rejection code is allotted to each
mandate by the customer’s bank on the NPCI
platform.
• Premium deduction will not start until mandate
acquires acceptance code on NPCI platform.
• NACH process of invoice based deductions will be
handled by that NACH Center under which the
servicing branch is located.
5. Instructions for filling NACH Mandate
• Tick “Create” box for NACH registration for new as well as existing policy.
• Tick “Create” box for change of bank in existing NACH also
• UMRN no. will be allotted by NPCI. Keep this field blank.
• Sponsor bank code and Utility code will be pre-printed. Sponsor bank code
will be different for different NACH Center, Utility Code is same for all NACH
Centers of LIC.
• Division code will be pre printed on the NACH mandate
• Bank account no. should be of core banking containing minimum 9 digits.
• Account no. should be written from left-most block EXACTLY the
way it appears on the cheque leaf. Excess blocks to the right side
should be kept blank. Initial zeroes, if any, should be written.
6. Instructions for filling mandate
Continued…
• Either IFSC or MICR code is to be written on the mandate , but IFSC code
should be preferred.
• Maximum Debit Amount should be actual/expected instalment premium
plus 25% rounded to next 100 rupees; to provide for future changes in
taxes or levies.
• Cancelled cheque leaf should be submitted with the NACH
mandate form for verifying correctness of bank details.
• Terms & Conditions of NACH duly signed by the customer
should accompany the NACH Mandate and / or alteration
and proposal papers.
7. Instructions for filling NACH Mandate (Continued)
• Correct mobile no. and email id of the customer should be provided. This will
help future communication with customer for acceptance and / or rejection of
the mandate by the customer’s Bank
• Only one policy no. should be written in policy no. column.
• “From” date should be any date before expected date of first deduction. Current
date can be written.
• “Name of A/c Holder” should be exactly as it appears in bank account.
• Do not fold staple pin or roll and secure mandate forms with elastic bands
• No correction or over-writing is allowed, even if it is counter signed by account
holder.
• Handwriting should be legible and clear.
• If mandate form is folded, mutilated, soiled or data written in mandate does not
match the soft file data or hand-writing is illegible; mandate is liable to be
rejected at the time of validation on NPCI platform
8. Acceptance / Rejection of NACH mandates at NPCI platform
• After validation of the scanned image of the NACH mandate on the NPCI
platform by the customer’s Bank an acceptance code will be allotted to all
the Clear cases. For all such cases, SMS to the customer will be sent by the
NACH centre and all future premiums will be deducted through NACH on
the registered debit date
• For those cases which are rejected by the customer’s bank due to any
reason , a rejection code will be posted and SMS will be sent by the NACH
Center to both customer as well as Agent . Letter to customer statung
reason for rejection will also be sent by NACH Centers.
• For All rejected cases , the customer has to submit a fresh mandate form
at the PS department of the servicing branch to be scanned and validated
once again .
• Until the mandate form acquires an acceptance code at the NPCI
platform , NACH debit will NOT commence .
