1. Purpose

This SOP documents standardized processes and controls for collecting, validating, submitting and monitoring SBI NACH mandates for Postal Life Insurance (PLI) premium collection. It ensures consistent execution, minimum errors/rejects, timely activation of mandates and clear escalation for exceptions.

2. Scope

• All PLI products where SBI NACH is used as an auto-debit channel (Suraksha, Santosh, Suvidha and other PLI schemes).
• Applies to Branch Offices (BO), Business Operations (BOps), Central Processing Center (CPC), Regional Office (RO), and Head Office (HO) teams that process NACH mandates.
• Includes mandate capture (paper & eNACH), verification, upload to SBI / NACH gateway, reconciliation, bounce & revival handling, and reporting.

3. Definitions

4. Roles & Responsibilities

4.1 Branch Office (BO)

• Inform customer about NACH facility, charges (if any), and obtain consent.
• Collect required documents: cancelled cheque / bank passbook copy, KYC as per policy, signed physical NACH mandate or eNACH initiation.
• Complete mandate form accurately — ensure bank account number, IFSC, account holder name, mobile number and email are correct.
• Perform initial data validation and forward to CPC within SLA (usually same day or next working day).

4.2 Customer Service / Sales

• Explain mandate process to customer, including timeline and revival/default fee implications.
• Assist in eNACH initiation (if customer chooses eNACH), ensure OTP reception and completion.

4.3 Central Processing Centre (CPC)

• Receive mandate files from BO; perform 2nd level verification (data vs documents).
• Scan / OCR paper mandates, prepare file upload to SBI NACH in required format (CSV / XML / API).
• Validate file format using schema & RBC rules; maintain logs & sequence numbers.
• Submit files to SBI NACH gateway; capture submission response and transaction IDs.
• Monitor response (ACK / NACK, UTRs) and update policy system.

4.4 SBI NACH (Bank)

• Receive mandate file; perform validation and return acknowledgment (ACK/NACK).
• Provide activation date and return any rejects with error codes/reasons.

4.5 Head Office & Compliance

• Maintain SOPs and change control.
• Escalation & dispute handling with bank and regulator.
• Conduct periodic audit & reconciliation.

5. Pre-requisites (Documents & System)

1. Physical NACH mandate form (printed) or electronic eNACH link integration with SBI NACH.
2. Cancelled cheque / bank passbook copy (showing account no. & IFSC) or bank-attested account confirmation.
3. Policy details: Policy number, Premium amount, Frequency, Premium due dates.
4. Customer KYC documents as per PLI policy (Aadhaar/PAN/Passport/Photo ID).
5. Connectivity: CPC access to SBI NACH portal / API credentials, approved file format (schema), and certificate (if required).
6. Designated SPOC list (BO → CPC → RO → HO) and escalation contact details.

6. Workflow — End to End (Step by Step)

6.1 Customer Request & Mandate Collection (BO)

1. Explain the NACH mandate benefits and process; obtain explicit consent (verbal + signed).
2. Fill the NACH mandate form accurately:
   • Customer Name (as in bank records)
   • Bank Account Number (verify against cancelled cheque)
   • IFSC code
   • Mandate reference / policy number
   • Debit Amount (max / fixed) and frequency
   • Start date and maximum end date (if applicable)
   • Signature/thumb impression as per bank requirement
3. Attach cancelled cheque / bank passbook copy and KYC documents. Scan one set and upload to CPC (if required) or send physical to CPC per local SOP.

6.2 eNACH Initiation (if chosen)

1. Initiate eNACH via integrated API or bank portal. Enter mobile & Aadhaar (if required) and trigger OTP/NetBanking consent workflow.
2. Customer completes OTP/NetBanking flow. Capture eNACH reference/consent ID and attach to policy record.

6.3 CPC Verification & File Preparation

1. Receive BO file (scans / csv) — log receipt with timestamp and BO reference.
2. 2nd level verification:
   • Verify account number against cancelled cheque / bank proof
   • Check IFSC correctness
   • Confirm customer signature / eNACH consent ID
   • Verify premium amount and frequency align with policy
3. Prepare upload file in bank-required schema (CSV / XML). Ensure record sequence number and file naming as per bank guidelines.
4. Perform pre-upload validation using local validator tool (schema & checksum).
5. Record batch file metadata (file name, total records, total amount) in upload log.

6.4 Submission to SBI NACH & Response Handling

1. Upload file via SBI portal / SFTP / API as per bank agreement.
2. Capture bank ACK/UTR and save for reconciliation.
3. Monitor NACH response timeline — bank provides ACK (T+0/T+1) then clearing status (T+2/T+3 depending on cycle).
4. Process rejects (NACK) immediately — create incident ticket with reason and return to BO for correction.

6.5 Activation & First Debit

1. Once bank confirms mandate activation, update policy system with NACH reference and activation date.
2. Schedule first debit as per mandate start date — notify customer by SMS/Email with debit details (amount, date, reference).
3. After debit clearness, reconcile transaction UTR to policy record.

6.6 Reconciliation & Recordkeeping

1. Daily reconciliation: CPC matches bank receipt file and mandate activation confirmations against uploaded batches.
2. Maintain upload logs, ACK/NACK files, UTRs and scanned mandates for audit (retain as per record retention policy, e.g., 7 years).

7. Mandate Filling Standards & Common Error Prevention

• Bank account name must match exactly — mismatches cause rejects. Use customer’s bank statement / passbook sample.
• IFSC accuracy — validate via RBI/Bank site or participating bank’s IFSC directory.
• DD/MM/YYYY formats — mandates must use correct date format (use standard: DD-MM-YYYY).
• Debit amount & frequency — use fixed amount or maximum cap as per product rules; do not leave blank.
• Signature validation — if signature missing or mismatch, mandate will be rejected. For eNACH prefer OTP/NetBanking route.
• Cancelled cheque — must be a physical cheque with bank branch imprint or account number printed; bank attested copies accepted per agreement.
• Duplicate mandates — check for existing active mandates to avoid duplication (leads to double debit complaints).

8. Error Codes, Reject Reasons & Corrective Actions

9. Bounce Handling & Revival Process

9.1 Bounce Types

• Soft Bounce — Insufficient funds, technical failure. Usually retry possible.
• Hard Bounce — Account closed, signature mismatch, invalid mandate. Requires new mandate.

9.2 Bounce Workflow (CPC → BO → Customer)

1. CPC receives NACH debit return report indicating UTR & reason code.
2. CPC flags policy record & notifies BO with return code and recommended action (revival attempt / new mandate).
3. BO contacts customer within SLA (24–48 hours) to inform about bounce and propose resolution (top-up, alternative account, fresh mandate).
4. If customer pays via offline mode (ECS one-time / cash / cheque), update policy system and mark revival attempt; maintain receipt evidence.
5. If new mandate required, follow steps in Section 6 to collect & resubmit.
6. Apply revival charges or default fees as per product rules and inform customer.

10. Exception Handling & Escalation Matrix

All exceptions should be logged in the incident tracker with unique ticket number and SLA assigned.

Contacts (Sample – update with your org details):

11. Audit, Reporting & Controls

• Daily Reports (CPC): Upload summary — files submitted, ACK/NACK counts, UTRs, activation list.
• Weekly Reports (RO/HO): Bounce summary, top 10 reject reasons, SLA breaches, open incidents.
• Monthly Audit (HO): Sample audit of mandates (10% sample) for compliance with KYC & signature rules.
• Logs & Retention: Maintain raw upload files, ACK/NACKs, UTRs, scanned mandates & KYC for 7 years (or regulatory period).
• Segregation of duties: BO collects → CPC uploads → RO/HO reviews; no single user should approve and upload same file without oversight.

12. Templates & Sample Forms

12.1 Sample Filled NACH Mandate (Paper) — Key Fields

12.2 Sample eNACH / Consent Record

12.3 Upload File Metadata Template (CPC Log)

13. Change Control & Versioning

1. All changes to this SOP must be approved by HO Operations and Compliance.
2. Version header must include: Author, Version no., Effective date, Approved by.
3. Maintain a change log table (date, change summary, author, approver).

14. Training & Competency

• All BO/CPC staff must complete annual training on NACH processes and mandate validation.
• Maintain training records and competency certificates (date, staff name, trainer).
• Periodic refreshers after any major process or regulatory change.

15. KPIs & SLAs

16. Compliance & Regulatory Notes

• Follow NPCI / RBI guidelines for NACH mandates and data handling.
• Ensure customer consent capture and storage for auditability.
• GDPR / local privacy: do not share customer data beyond authorized recipients; encrypt sensitive files in transit (SFTP) and at rest.

17. Appendix

17.1 Example Escalation Email Template

17.2 Sample Incident Log Format

17.3 Revision History