NPCI Launches eNACHLite for Seamless Electronic Mandates

⚡ Key Financial Takeaways

NPCI has launched eNACHLite, a new framework for electronic mandates.

eNACHLite allows customers to manage mandates within apps without being redirected to a web browser.

The system supports authentication through cards or Aadhaar, followed by a one-time password.

Viyona Fintech India has completed the development and testing of eNACHLite and is ready to onboard banks.

💡 Why It Matters

The introduction of eNACHLite by NPCI is significant because it addresses a longstanding issue in Indian auto-debit systems - the redirection of users from apps to web browsers for mandate management. By allowing customers to manage electronic mandates within apps, eNACHLite aims to reduce mandate drop-offs and customer complaints, ultimately enhancing the user experience for auto-debit transactions.

Introduction of eNACHLite

The National Payments Corporation of India (NPCI) has unveiled eNACHLite, a new framework designed to streamline electronic mandates. Launched at the Global Fintech Fest 2026 in Mumbai on September 9, eNACHLite enables customers to create, modify, pause, or cancel electronic mandates directly within an app.

Key Features and Benefits

eNACHLite aims to simplify the process of setting up auto-debit mandates for various products such as loan EMIs, insurance premiums, and investments. Customers can authenticate transactions using a card or Aadhaar, followed by a one-time password. This approach eliminates the need to redirect users from an app to a web browser, potentially reducing mandate drop-offs and customer complaints.

Implementation and Support

Hyderabad-based Viyona Fintech India, an NPCI-certified Technology Service Provider, has completed the development and end-to-end testing of eNACHLite. The company is ready to onboard banks and will provide technical implementation, NPCI certification, and operational support for participating banks, NBFCs, and lenders. Existing eNACH mandates will remain unaffected, and banks will not need to build new applications.

Security Measures

Sensitive information such as card numbers and Aadhaar details will be securely handled within NPCI's software, ensuring that banks do not hold this sensitive data.

Industry Impact

Ravindranath Yarlagadda, chairman and CEO of Viyona Fintech India, highlighted that the redirection to a web page has been a significant weakness in Indian auto-debit systems. eNACHLite addresses this issue, providing clearer error messages and improving the overall user experience for auto-debit transactions.

🏛️ Background & Context

The NPCI's initiative is part of a broader effort to improve digital payment systems in India. eNACH (National Automated Clearing House) is an existing platform that facilitates auto-debit transactions. The new eNACHLite framework builds upon this foundation, offering a more streamlined and user-friendly experience for managing electronic mandates.

👁️ What To Watch Next

As eNACHLite begins to be implemented by banks and financial institutions, it will be important to monitor its adoption rate and the impact on auto-debit transactions. Additionally, observing how this new framework influences the reduction of mandate drop-offs and customer complaints will provide insights into its effectiveness.