The National Payments Corporation of India (NPCI) on August 18, 2023, issued a circular regarding the mandate duration and mandatory final collection date.
The following has been stated: -
•The mandate management system facilitates the acceptance, digitization, processing, and transmission of mandates across banks, allowing customer requests for debits based on amounts and periodicity through NACH. In order to bring more robustness to the process it has been decided to implement the following: -
1. Maximum period for which a mandate can be issued: A mandate can be issued for a maximum duration of 30 years from the date of issuance. Validation will be built into the central system to accept only the mandates that are for a duration of 30 years or below.
2. Final collection date (end-date) of mandate to be mandatory: It has been decided to remove the option of "until canceled" for all categories of mandates, it will be mandatory to provide the Final collection date (end-date) for all the categories of mandates. Refer to point 1 above the end date cannot be more than 30 years from the date of the mandate.
This will come into effect from October 01, 2023.
The detailed notification is given in the document attached below.
[Circular No. NPCI/2023-24/NACH/008]
