The National Payments Corporation of India (NPCI) on November 27, 2024, issued a circular regarding the Changes in Rejection reason codes and descriptions in NACH.
The rejection reason codes and descriptions for E-Mandates are being updated based on feedback from participating banks to ensure clearer communication with end users. These updates aim to help users understand why their mandate creation was rejected and take corrective actions. Banks are instructed to update their systems with the new codes and descriptions to prevent discrepancies in mandate registration responses. Additionally, banks should analyze rejection data and aim to reduce the TD (Targeted Rejection Rate) to below 0.5%. All participating banks must implement these updates by January 1, 2025.
[Circular No. NPCI/2024-25/NACH/006]
