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A business sees one NACH credit for a whole batch of customer debits and cannot tell from the statement who paid and who did not.
NACH settles successful debits as one aggregate credit; failures come back in a return file; customer-level receipts come only from the settlement and return files keyed by UMRN.
Presentation file, settlement or response file and return file for each batch, a UMRN-to-customer map, and the bank statement credit.
Each batch credit split to customers, every failure flagged by UMRN, and the batch closed only when files and bank agree.
A NACH collection batch settles as one total credit for all the debits that succeeded, while the failed ones come back separately in a return file. So your bank statement shows a single line for many customers. The statement alone cannot tell you who paid; the settlement and return files, matched by UMRN (Unique Mandate Reference Number), can.
What does the timeline of one batch look like?
- Due date (Day 0). Your sponsor bank presents a file of debits, one per customer mandate, to NPCI.
- Settlement. Customers’ banks process their debits. NPCI settles the successful ones and your sponsor bank credits you one total.
- Returns (typically Day 1 or Day 2). Debits that failed come back in a return file with a reason for each.
The bank credit can land before you know every result. That is why a credit is never proof that a particular customer paid.
Why does one credit hide many customers?
| Cause | What happens | Which file proves it |
|---|---|---|
| Aggregate settlement | All successful debits credited as one amount | Settlement or response file |
| Separate returns | Failed debits never reach the credit | Return file |
| Later-day returns | A return arrives after the first file | Later return file or final status |
| Partial batches | The bank splits a large batch into two credits | Sponsor bank batch report |
| Sponsor-bank netting | Charges deducted before the credit | Bank charge advice |
How do I split the credit into customers?
Use the files, not the narration:
- Take the presentation file: list of UMRNs, customers and amounts presented.
- Mark each UMRN as success or returned using the response and return files.
- Total the successes. This should equal the bank credit, less any netted charges.
- Post each successful amount to that customer’s or loan account.
- Leave returned debits as overdue and follow up.
Use the UMRN as the key. Names and amounts can repeat; the UMRN identifies one mandate.
Worked example: three EMIs, one credit
On Friday, 6 November, a small lender presents three EMIs:
| Customer | UMRN (shortened) | Amount |
|---|---|---|
| A | …4411 | ₹12,500 |
| B | …7820 | ₹8,000 |
| C | …1093 | ₹15,000 |
| Total presented | ₹35,500 |
The bank statement shows one NACH credit of ₹27,500. On Monday, 9 November, the return file shows customer B’s ₹8,000 was returned for insufficient balance.
Check: ₹35,500 − ₹8,000 = ₹27,500. The credit agrees.
Entries:
- Bank debit ₹27,500.
- Customer A credit ₹12,500.
- Customer C credit ₹15,000.
- Customer B stays overdue at ₹8,000; the sponsor bank may also charge a return fee (plus 18% GST on the fee) that you book as bank charges.
If you had posted the ₹27,500 by guessing from the narration, you might have marked B as paid and missed the return.
What if the files and the credit do not agree?
Look for a return that arrived later, a batch split across two credits, a charge netted off, or a debit from another batch date. Under Section 25 of the Payment and Settlement Systems Act 2007, a mandate debit that fails for insufficient funds can carry legal consequences for the customer, so your return records also need to be accurate and dated.
A quick checklist for every batch
- Total presented equals successes plus returns.
- Successes equal the bank credit, after any netted charges.
- Every return has a reason and a follow-up owner.
- No customer is marked paid until the final status is in.
- The batch is closed only when all four agree.
What to read next
- NACH EMI reconciliation for NBFCs shows mandate-level splitting at scale.
- NACH return reasons reference explains each return reason.
- What is a UMRN and why a bank credit will not match.
NACH reconciliation is on the TransactIG roadmap; see NACH batch reconciliation and bank reconciliation software for bank-to-books matching today.