Introduction

eNACH (Electronic National Automated Clearing House) is an online mandate system developed by the National Payments Corporation of India (NPCI). It allows you to collect recurring payments directly from your customer’s bank account after the customer provides prior authorization through a digital mandate.

Once the mandate is successfully created and approved, you can automatically debit the customer’s bank account for scheduled payments such as loan repayments, subscription fees, insurance premiums, or utility bills.

When to Use eNACH

eNACH can be a suitable option for certain recurring payment use cases, particularly in scenarios such as:

• Lending use cases: For MCC 7322 (Lending), UPI Autopay supports transactions up to ₹15,000 per debit.
• Financial services use cases: For MCC 6012 (Financial Services), the limit can go up to ₹1,00,000, but non-revocable mandates cannot be created.
• Pre-Debit Notification (PDN): Customers receive a notification before the debit is processed and may choose to cancel the payment.
• Existing banking ecosystem adoption: Many financial institutions already rely on NACH-based systems, making eNACH a commonly used solution for recurring payments.

How to Integrate

To integrate eNACH, you need to complete the following major steps:

Step 1: Subscription Setup
First, create a subscription for your customer and manage the recurring payment lifecycle. This includes:

• Subscription Setup: Creating a subscription.
• Subscription Status: Checking the subscription status.
• Subscription Order Status: Checking the order status.
• Webhook Handling: Setting up Webhooks to receive updates on mandate and payment events.

Step 2: Payment Operations
After the mandate is successfully authorized, you can perform payment operations using the following APIs:

• Redeem: Initiate a debit request against the approved mandate to collect the payment.
• Redeem Cancel: Cancel a debit request before it is processed.
• Redeem Order Status: Check the final status of the debit transaction.

Before You Start

Before you start using the APIs, you must first call the Authorization API to generate an access token. This token is required to authenticate all subsequent API requests.

To call the Authorization API, you will need your API credentials. You can find your credentials in the PhonePe Business Dashboard:

• Log in to the PhonePe Business Dashboard.
• Navigate to Developer Settings.
• Copy your client credentials.

Use these credentials to call the Authorization API and generate an access token. Once you receive the access token, include it in the header of all API requests.

After completing this step, you can proceed with the integration explained in the next section.