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A bookkeeper finds a NACH debit on the bank statement that matches no bill or agreement in the books.
Almost every NACH debit is presented under an earlier mandate; the narration's originator name and UMRN identify it, and the bank's mandate list confirms it.
A suspense ledger for untraced debits, a register of live mandates by UMRN, and the bank's mandate list from net banking or the branch.
Every NACH debit traced to its mandate and posted to the right ledger, with old mandates cancelled and suspense cleared each month.
An unfamiliar NACH debit is almost always a mandate that someone in the business signed earlier: a loan EMI, an insurance premium, a mutual fund SIP, a software or OTT subscription, or a utility bill. The narration on the bank statement carries the originator’s name and the UMRN (Unique Mandate Reference Number), and those two clues will usually tell you what it is.
What are the likely causes?
| Likely cause | Clue in the narration | Where to confirm |
|---|---|---|
| Loan EMI | Lender or NBFC name | Loan schedule |
| Mutual fund SIP | Fund house or registrar name | SIP statement |
| Insurance premium | Insurer name | Policy schedule |
| Software or OTT subscription | Service or gateway name | Email invoices |
| Utility bill auto-pay | Electricity, gas or telecom provider | Utility bill |
| Old mandate still active | A supplier or lender you stopped using | Old agreement |
| Wrongful debit | Name you have never dealt with | Bank, after a complaint |
How do I trace the debit?
- Read the narration. Note the date, amount, originator name and UMRN.
- Search your records for that name: emails, loan files, policy papers.
- Check the live mandate list. Many banks show active mandates in net banking; otherwise ask at the branch.
- Quote the UMRN to your bank or the originator. It identifies one mandate exactly.
- Ask for a copy of the signed or electronic mandate if still unclear.
What if I cannot match it to any agreement?
Hold the entry in a suspense ledger so the bank balance agrees, and write a note with the UMRN. Then:
- Ask the originator for the mandate copy.
- Raise the debit with your bank in writing.
Speed matters. Under RBI’s customer protection rules for unauthorised electronic transactions (circular dated 6 July 2017), a customer who reports within three working days has zero liability where the fault lies with a third party; reporting within four to seven working days can mean limited liability, typically capped between ₹5,000 and ₹25,000 depending on the account type. Do not wait for month end.
Worked example: a quarterly premium
On 12 October a business finds a NACH debit of ₹4,720 with an insurer’s name and a UMRN. No bill is in the books.
- Day 1: post ₹4,720 to suspense. Bank and books agree.
- Day 2: search email for the insurer’s name; find a group health policy taken in July with a quarterly premium.
- Check: the policy schedule shows premium ₹4,000 plus 18% GST of ₹720. ₹4,000 + ₹720 = ₹4,720. It matches.
- Day 2 entry: move ₹4,720 from suspense: ₹4,000 to insurance expense and ₹720 to input GST, if the policy is in the business’s name and input credit is allowed for that cover; otherwise the full ₹4,720 is expense.
Suspense is now nil, and the next quarterly debit is expected in January.
How do I stop this happening again?
Keep a register of live mandates: originator, purpose, amount, frequency, UMRN and end date. Review it every quarter. Cancel mandates you no longer need through your bank or the originator. Cancelling stops future debits, not dues you still owe.
What should go in the suspense note?
Write enough that anyone can pick it up: the date, the amount, the full narration, the UMRN, who is chasing it and the date the query was raised with the bank or originator. Review every open suspense line at month end. An unexplained NACH debit that sits for more than a month is both a reconciliation problem and, possibly, money the business should be recovering.
What to read next
- What is a UMRN and where to find it
- Bank statement narration patterns in India explains how each bank prints NACH lines.
- Bank narration parsing with Excel formulas
TransactIG matches bank statement lines to your books with an exception queue for untraced items like this one and audit-ready exports; see bank reconciliation software. NACH reconciliation is on the roadmap (NACH batch reconciliation).