NACH – Return Reasons


In an idealistic situation, all ePayments should be successful. However, as ideal situation does not exist, about 10 to15% of ePayments are returned by the Destination Banks.

Under the prevalent ECS (Electronic Clearing Services) platform, there were only 9 return reasons. The most irritating reason to the Sponsor Bank or the Utility Company was the 09-Miscellaneous reason. The word ‘miscellaneous’, is very ambiguous, and this was one of the main reasons for the moderate success of ECS mode of ePayments.

The clearer the ‘return reason’, is in ePayments, the more institutions will prefer to adopt ePayments.

Hence, a wide variety of ‘Return Reasons’, have been introduced in the NACH (National Automated Clearing House) platform. These have been selected by NPCI after consultation with the participant banks.

Destination banks are encouraged to choose the correct ‘return reason’, to enhance customer delight.

Under Miscellaneous return code, the following are the additional return reasons: –

51 KYC Documents pending

52 Documentation pending for account holder turning major

53 Account Inactive (No transactions for the last three months)

54 Dormant Account (No transactions for the last six months)

55 A/c in Zero balance/No transactions have happened, first transaction in cash or self-cheque

56 Simple Account, first transaction to be from base branch

57 Account exceeds limit set on account by bank for credit per transaction

58 Account reached maximum credit limit set on account by bank

59 Network failure (CBS)

60 Account holder expired


One of the positives features of the NACH platform, that the status of all the transactions is informed to the sponsor bank / utility company. The status of the transaction has to be ‘success’, or ‘return’.



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