What is NACH and How it’s impacting your LIC Policy?

What is NACH

Reserve Bank of India (RBI) has set up a new nodal authority – National Payments Corporation of India (NPCI) for handling all electronic payments in the banking system. NPCI has set up a new mandate process, which is called – National Automated Clearing House or NACH. NACH is a web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature.for handling high volume regular transactions for Banks, Financial Institutions, Corporates and Government. This new mandate process (NACH) is now all set to replace the ECS in the future.

Do you need to Amend/Change existing ECS?

The existing ECS mandates will continue to be valid the present ECS cycle. No changes will be made to your ongoing ECS. Once the tenure or current ECS mandate expire and if you wish to renew the ECS or want to change the ECS to another Bank Account, you will have to fill in and submit a new NACH form.

Things to know about NACH

1. From 1st May, 2016 NACH has replaced ECS.
2. New NACH form does not require bank attestation.
3. NACH is a centralized process, where as ECS is a zone wise process.
4. Use separate Form for Each LIC Policy.
5. A Cancelled Cheque or Passbook Copy with Account holder Name, account no and IFSC code is required.
6. You need to pay two premium for Monthly Mode Cases.
7. Choose from 7th / 15th / 22nd / 28th Debit Date Options
8. UMRN (Unique Mandate Registration Number) field should be left blank.
9. For New Business Cases Policy Number & Amount will be filled by LIC India officials.
10. Mobile Number of Customer is Compulsory.

Also read:
1. NACH FAQs
2. NACH Terms and Conditions