NPCI launches eNACHLite to stop auto-debit payment failures

Paying an EMI, a mutual fund SIP, or a utility bill such as electricity or water often meant dealing with failed auto-debit payments. That problem is now set to end for good. The National Payments Corporation of India, or NPCI, has launched its new system, eNACHLite, at the Global Fintech Fest 2026 held in Mumbai.

The new system will make it far easier to set up auto-debit commands for loan EMIs, insurance premiums and SIPs. Earlier, at the time of payment, users were redirected out of the app to a browser, where the payment failed most of the time. Now the entire process will be completed inside the app itself, within seconds. The technology has been built and tested by Hyderabad-based company Vhiona Fintech, an NPCI-certified technology service provider. It has been designed so that banks and lending companies can integrate this new facility quickly.

Previously, the problem was that when a customer set up an auto-debit for an EMI, insurance premium or mutual fund, the app would redirect them to an external web browser page. The process would then be left incomplete because of slow-loading pages, app crashes or other technical glitches. This caused considerable frustration among customers and led to a flood of complaints at banks' call centres.

NPCI has now done away with the need to go to an external web page altogether. All transactions will now be completed within a single app, and users will not need to leave the app at all. Setting up a mandate, modifying it, pausing it or cancelling it can all now be done easily from within the app. The customer will see all the details on screen in the app, after which they will verify their identity using their card or Aadhaar. Once the OTP received on their mobile is entered, the entire process will be completed within seconds. Notably, even if a transaction fails for some reason, the system will itself indicate where the problem occurred.

With technical glitches removed, more customers will be able to complete their payments, which will significantly reduce the number of complaints reaching call centres. Knowing the exact reason for a payment failure will also let customer care staff help immediately. Additionally, banks will not need to build a separate new app for this, since NPCI-certified companies such as Vhiona Fintech will handle the entire technical infrastructure and security. Most importantly, customers' sensitive card and identity information will be stored directly in NPCI's secure system, removing the risk of data leaks.