When it comes to timely school fee payments, even the most well-intentioned parents sometimes forget deadlines. This leads to mounting defaulter lists, additional reminders, and strained staff-parent interactions.
Enter eNACH mandates—an RBI-approved auto-debit system that allows schools to collect fees directly from a parent’s bank account on the due date. Think of it as a "virtual post-dated cheque" that works seamlessly, every term.
In this blog, we explain what eNACH is, how it works, and how schools can leverage it to simplify collections, reduce follow-ups, and improve on-time payments.
What is eNACH? eNACH (Electronic National Automated Clearing House) is a service developed by the National Payments Corporation of India (NPCI) following the Reserve Bank of India's (RBI) guidelines, that is facilitated by NPCI and banks that allows recurring payments to be automatically debited from a customer's bank account.
In the context of school fee collection, it means parents authorize the school (via a service provider like Ether) to auto-debit fees on scheduled due dates. Once a digital mandate is signed (via Aadhaar or NetBanking), no manual intervention is needed thereafter.
Benefits of eNACH for Schools
Predictable Cash Flow: When most parents are on eNACH, schools know exactly how much fee will be collected on which date. This helps immensely in budgeting and managing payroll, vendor payments, and operational expenses.
Reduced Follow-Ups: Since fees are auto-debited, there’s no need to send reminders or handle missed payments manually. The system retries if a debit fails and updates the status instantly.
Higher Collection: Rates Schools using eNACH have seen up to 89% on-time collection in the first month of the term—far higher than manual follow-up models.
Better Parent Experience: Parents no longer have to remember due dates or log in to make payments. Once set up, the process is seamless and secure.
Audit-Ready Records: Each mandate and transaction comes with a unique ID, timestamp, and digital trail—perfect for compliance and reporting.
How to Enable eNACH in Your School
Partner with a platform like Ether that is pre-integrated with eNACH through trusted payment gateways.
Offer parents a mandate setup option via your school app or website (NetBanking or Aadhaar e-sign based).
Communicate clearly to parents that this is a safe, RBI-regulated service that requires a one-time authorization.
Once mandates are approved, fee collection becomes automated and system-managed.
Important Considerations
Parents can revoke or pause mandates anytime, giving them control.
Failed debits (e.g., due to insufficient balance) are notified instantly, and the system can retry on the next working day.
eNACH works only with banks that support the service (most major ones in India do).
Conclusion: From Chasing to Collecting Schools shouldn’t have to chase payments every term. With eNACH mandates, you move from reactive reminders to proactive collection—ensuring timely fee inflow without manual effort.
Ether's EasyPay module enables eNACH setup in minutes, with detailed dashboards and live reconciliation.
