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NPCI NACH mandate maintenance charges

NPCI introduced NACH mandate maintenance charges in 2020 for both active mandates and dormant mandates.

Please see NACH Circular Number NPCI/2020-21/NACH/006 dated 23 June 2020 for details.

You can view the circulars here: https://www.npci.org.in/what-we-do/nach/circulars

To avoid unnecessary mandate maintenance charges, you should cancel unused mandates.

Extract of the circular

Annual maintenance charges for mandates

Mandate Management Service (MMS) of NACH offered to banks and corporates for registration of mandates, all registered mandates are stored in NACH database. It is observed that a large number of mandates remain dormant without a single transaction being presented. As per the process the corporates should reconcile their registered mandates and deactivate the mandates in the following cases
1. Mandates not used at all
2. The underlying transaction (for example loan or SIP or insurance) has come to an end

In order to bring in discipline in the ecosystem it has been decided to levy annual maintenance fee as detailed in Annexure I. Maintenance fee will be effective for the financial year 2020-21. The corporates and banks that have registered mandates in NACH are advised to review the existing mandates and deactivate the mandates that are not in use.

Member banks are advised to take note and disseminate the information to all the concerned.

1. Dormant mandates:

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SI. No.	Dormant period	Maintenance fee (per mandate per annum)
1	First year	Rs. 1/-
2	Second year & third year	Rs. 2/-
3	Fourth & fifth year	Rs. 3/-
4	Sixth year onwards	Rs. 5/-

2. Active mandates will be levied maintenance fee of @ Rs. 0.50 per mandate per annum.

3. Explanation:

Security mandates will be considered as active mandates
Mandate with at least one transaction during the financial year will be considered as active mandate.
Mandate registered during the current financial year not having transactions for more than 6 months will be treated as dormant mandates expect for mandates registered with annual frequency.
Dormancy fee will be applicable even if a mandate is in dormant state for the first 6 months of the year and then cancelled by corporate.
Charges will be calculated at the end of the financial year i.e. in March based on the latest bank mapping to utility code in mandate.