The National Payments Corporation of India (NPCI) on October 31, 2023, issued an addendum to the notification regarding the Penalty for a high percentage of ACH debit returns circular no: NPCI/2023-24/NACH/007 dated August 18, 2023.
It is clarified that to ensure that the customer is aware of the initiation of debit transaction/representation thereof in case of returns, the entity initiating the transaction/representation shall send a due notification to the customers of such presentation/representation through SMS alert, email etc.
Representation shall be done allowing some time for the customer to arrange the funds in the account. It is suggested that a 3-day cooling period may be given, from the date of notification, before representing a returned transaction.
The following actions are kept in abeyance till further notice:
o In view of the pre-printed physical mandates already in circulation, it has been decided to provide some more time for the stakeholders to get the new stationary ready for implementing the end date for physical mandates.
o Additional charges/action on high %age of returns.
The participants should exercise utmost restraint (1 presentation + 2 representations) while representing returned transactions and ensure that the return percentage is brought down.
[Circular No. NPCI/NACH/OC No.010/2023-24]
