NACH Mandate Cancellation

I. INTRODUCTION

The Multi-State Agri-Horticultural Development Co-operative Society (“Society” or the “Organization”) is a cooperative entity focused on fostering economic and social development through agriculture and horticulture initiatives across multiple states.

This Standard Operating Procedure (SOP) establishes the guidelines and process for the cancellation of National Automated Clearing House (NACH) Mandates submitted by customers.

II. PURPOSE

For facilitating payments from members/customers, the Society permits the submission of NACH mandates, which, after being signed by the customer, are forwarded to the bank for necessary linking. Once linked, the due amount is uploaded and sent to the customer’s bank for collection.

There may be instances where a customer needs to change their mode of payment due to the closure of their current bank account or any other reason, necessitating the cancellation of their current NACH mandate.

In alignment with good governance and as per the instructions of the National Payments Corporation of India (NPCI), the Society provides customers with online and offline channels to initiate NACH mandate cancellation requests.

III. PROCESS

The Society shall ensure the following steps when processing a customer’s request for NACH mandate cancellation:

1. Physical presence of customers is not required for submitting a cancellation request.
2. Customers may initiate an NACH mandate cancellation request via email at [email protected] or by submitting a written request at any of the Society’s branches.
3. An acknowledgment will be sent to the customer upon receiving the request, including a reference number for tracking.
4. The customer will be informed of the Society’s willingness to process the cancellation, and a reconfirmation will be obtained before finalizing the request.
5. Once the request is received, the Society will verify the details. If accepted, no further transactions will be initiated against the respective account.
6. Upon validating the authenticity of the request, the Society will liaise with NPCI and the customer’s bank for processing the cancellation.
7. A final confirmation will be provided to the customer once NPCI confirms the mandate cancellation.

IV. SCENARIOS FOR REJECTION OF THE REQUEST

A customer’s request for NACH mandate cancellation may be rejected under the following conditions:

1. If there is an outstanding amount in the customer’s account and no alternative mode of payment (such as direct debit) has been registered.
2. If the customer fails to submit a fresh NACH mandate from another bank to ensure the continuation of payments.

This SOP ensures that all NACH mandate cancellation requests are handled in a structured and transparent manner, aligning with compliance and regulatory requirements.