Terms and Conditions Governing E-NACH/Mandate Facility

National Payments Corporation of India (“NPCI”) has implemented Electronic National Automated Clearing House (“E-NACH”) which is the electronic process of helping the banks, financial institutions, corporates and other government bodies to provide automated payment services.  It provides a web-based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. The E-NACH system is used for bulk towards the distribution of subsidies, dividends, interest, salary, pension, etc. and also for bulk transactions towards the collection of payments for telephone, electricity, water, loans, investments in mutual funds, insurance premium, etc. E-NACH makes transactions safer for parties who deal with large volumes of transactions on a daily basis. E-NACH’s single settlement system is beneficial to every small or large business for the safe payment and collection of funds at regular intervals.

1. Definitions:
   • “IBL/Bank” shall mean Indusind Bank Limited.
   • Accounts” shall mean any bank account of the client held with IBL, which is an eligible account by IBL for NACH service.
   • “Client” shall mean any person having an account with IBL and requesting IBL for availing NACH service.
   • “Instructions” shall mean and include requests given by the Client to IBL to execute, modify or cancel any collection and/or payment facility, including collections or disbursement of money in electronic mode related to the NACH service availed from IBL.
2. Benefit for Customers:
   • An automated process of transfer for easier and simpler handling of payments.
   • No manual process involved here.
   • A faster process that can be settled in a single day.
   • The auto-debit feature allows customers the freedom to not remember the payment dates. This applies for EMI, bills, taxes and other recurring payments that one has to pay at regular intervals.
3. Benefits for Organization:
   • There is no dependence on cheques or clearance.
   • Payments such as scholarships, allowances, and subsidies take less time to process.
   • Salary, dividends, and pension payments are all made on schedule.
   • Much improved customer service and bill payment.
4. Pre-requisites for availing E-NACH/Mandate:
5. Facility:
   • The funds shall be credited/debited to the account in accordance to the Instructions given by the Client.
   • Basis the Instructions provided by the Client which shall at all times be in conformity with the process detailed and in accordance with IBL’s internal policy, IBL shall credit or debit the account of the Client.
   • The Client hereby unconditionally and irrevocably authorizes IBL, to reverse any credit (if the same has already been credited to the account) consequent to the return of the mandate unpaid and/or upon erroneous credit, late or counter return and late success claims received from member Banks. If the amount in the Account is sufficient, IBL shall be entitled to debit the account with the amount of credit given to the Client. Where the amount in the account is insufficient to cover the aforesaid amount, then IBL shall be entitled to recover the same from the Client in any manner as it may deem fit and Client undertakes to pay the same forthwith and in any case not later than ____ days from demand by IBL.
   • IBL is under no obligation to comply with any payment instruction or to make fund transfer that would exceed the available funds in/available limit on the Account(s) designated for such payment instruction(s).  However, if IBL executes the payment Instructions without properly applicable funds being available in the Account, the Client shall be bound to pay to IBL, principal amount together with interest and other amounts/charges payable to IBL.
6. Security:
   • E-NACH It has security checks at multi-level measures so that the Client’s money is safe.
   • The NACH system is governed by the RBI, which makes it a centralised unit for monitoring and controlling all transactions in the country.
7. Indemnity:

   The Client agrees to indemnify, without delay or demur, IBL and its directors,  employees, officers, representatives and agents  and keep IBL and its directors employees, officers, representatives and agents indemnified and harmless at all times from and against any and all claims, damage, losses, costs and expenses (including attorney fees) which IBL may suffer or incur, directly, arising from or in connection with IBL providing E-NACH facility to the customers, including but not limited to:

   • Any loss, mishandling, counterfeit, forged or misuse of mandate or transactions and/or instructions;
   • Defect in or absence of title of the Client or the beneficiary under the mandate and/or transactions or forgery or alteration of the transaction data or information;
   • Any transaction which are returned unpaid or any mandate which are dishonoured;
   • Non-compliance with applicable laws or court or statutory order or any action by any statutory administrative or regulation body;
   • Any claim by any beneficiary or third party in relation to any mandate or transaction or otherwise;
   • Any inaccuracy, error or omission of any data, information or message provided by the Client;

   A written demand by IBL Limited as to the loss/damages shall be final, conclusive and binding on the Client and the Client shall be liable to pay on demand, without any contestation/demur the amount of such loss/damage to IBL.

8. Change of Terms: IBL may modify, terminate and/or suspend the present terms and conditions to the Client anytime with or without prior notice, due to changes in rules, regulations and laws set by relevant authorities/regulators or due to change in IBL’s internal policies.
9. Declarations by the Customer:
   • I agree for the debit of mandate processing charges by the Bank whom I am authorizing to debit my account as per the latest schedule of charges of Bank.
   • This is to confirm that the declaration and the Standing Instruction Mandate letter   has been carefully read, understood and made by me/ us.
   • I am authorizing the User entity/ Corporate to debit my account, based on the instruction as agreed and authorized by me.
   • I have understood that I am authorized to cancel/ amend this mandate by appropriately communicating the cancellation/ amendment request to user entity/ Corporate or the Bank where I have authorized the debit.
   • I undertake and shall ensure  to keep my account  would be adequately funded  at all times, during the subsistence of the E NACH mandate  and shall  not hold the Bank responsible in the event the mandate is dishonoured or returned unpaid on account of insufficient balance in my account .
   • I confirm that this authorisation will override any other previous authorisation given by me to debit my account and the Bank shall act in accordance with the authorisation given by me under this request.
   • I confirm that upon modification of existing NACH/e-NACH mandate/ authorisation given by me, I shall furnish a security mandate along with a copy of cancelled cheque immediately upon the receipt of request from the Bank in the form and manner satisfactory to the Bank.
   • I/We authorise IBL to debit my bank account if my/our mandate is active and until I/We give a written request for cancellation of e-NACH/mandate.