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Reconciliation Pattern

NACH Batch

Match NACH mandates and bulk payroll credits against individual account records

What this pattern solves

NACH (National Automated Clearing House) batches arrive as a single bank credit representing hundreds or thousands of individual mandates — EMI collections, salary disbursements, or subscription payments. The NACH batch reconciliation pattern disaggregates the bulk credit into its constituent transactions, matches each against the corresponding account record, and handles bounces, partial collections, and mandate amendments as named exception types.

Use this pattern when:

  • You collect EMIs via NACH mandates (NBFC, MFI, co-operative bank)
  • You disburse payroll via NACH batch (HR, payroll processing)
  • You manage subscription billing via NACH (insurance, SaaS)
  • You need to reconcile NPCI return files against bounce records
  • Batch bank credits must be mapped to individual loan or employee accounts

How it works in TransactIG

01

Ingest mandate file and bank credit

TransactIG ingests the NACH mandate file (NPCI format) and the corresponding bank statement entry. The mandate file lists individual accounts, amounts, and mandate reference numbers.

02

Disaggregate batch credit

The sum of all mandate amounts is matched against the batch bank credit. Individual mandates are reconciled account by account against the mandate file.

03

Process NPCI return file

Bounced mandates are identified from the NPCI return file, matched against the original mandate records, and classified by return reason code (insufficient funds, account closed, mandate cancelled, etc.).

04

Write back to LMS or payroll system

Matched status is written back to the loan management or payroll system — clearing individual accounts and flagging exceptions for follow-up.

Matching rules

Batch total match
Sum of successful mandates (total − bounces) = net bank credit.
Mandate-level match
Each mandate reference matched to account record.
Return code match
NPCI return reason codes matched to bounce type classification.

Variance taxonomy

V
Cleared mandate
EMI/salary collected successfully.
V
Bounce — insufficient funds
NPCI return code 01. Retry eligible.
V
Bounce — account closed
NPCI return code 05. Requires mandate cancellation.
V
Mandate amendment
Amount or date changed; new mandate reference.
V
Partial collection
Only partial mandate amount cleared by bank.

Frequently asked questions

Does TransactIG support both NACH debit (collection) and NACH credit (disbursement)?

Yes. The NACH batch pattern handles both debit mandates (EMI collection) and credit mandates (salary/subsidy disbursement) with appropriate matching logic for each direction.

How are bounced mandates tracked for retry?

Bounced mandates are classified by NPCI return code, tagged with the bounce date, and tracked for retry eligibility based on your configured retry policy (e.g. retry after 2 days for insufficient funds).

See the NACH Batch pattern in action

Terra Insight will run a live TransactIG demo using this matching pattern on data from your industry vertical.