NACH utility codes

The NACH utility code determines the merchant's name on the mandate and customer's bank statement. Merchant can use LotusPay's common utility code, or get their own and use it with LotusPay.

An NACH utility code is an alpha-numeric identifier issued by NPCI to a legal entity that entitles that entity to participate in the NACH payment system. Along with the utility code is a user name, which is always the entity's legal name in upper case with the suffix abbreviated (without special characters).

• Example NACH utility code: NACH00000000001234

• Example NACH user/creditor name: XYZ SERVICES PVT LTD

NPCI issues one utility code per legal entity. If an entity tries to create additional utility codes, NPCI will reject the request. Earlier NPCI used to issue multiple utility codes per entity, but this practice has ceased.

NPCI issues the utility code to an entity upon application via a sponsor bank. That original sponsor bank is automatically linked to the utility code in NACH. The entity can further link this utility code to additional sponsor banks. The NACH process in one sponsor bank is not disturbed by linking the utility code to another sponsor bank.

The creator of the mandate (creditor/merchant/service provider) inserts utility code and creditor name in the mandate creation request.

The utility code owner is the controller of the mandate in NPCI.

The creditor name inserted in the mandate can be different to the utility code owner (as is often done when an aggregator uses their common utility code for multiple merchants, and specifies the merchant's name as the creditor).

The narration that the customer sees on their bank statement usually includes the creditor name inserted in the debit input request (which can be specified ad hoc but is usually taken from the mandate), but sometimes can be the creditor name that the destination bank has recorded in the mandate.

To get started with LotusPay, you generally need to have your own NACH utility code, or that of your partner's. You benefit from LotusPay's deep integrations with the banking and NACH systems.

To use your own utility code, you'll need to contact us to add a NACH profile.