Recurring payments used to be a challenge in India’s B2B sector. Collections were manual, reconciliation took time, and businesses often chased overdue payments. This began to change with eNACH (Electronic National Automated Clearing House), a system introduced by the National Payments Corporation of India (NPCI) to digitize recurring payments directly from bank accounts.

Originally, eNACH was linked to loan EMIs and insurance premiums. Today, the landscape has shifted. Companies across different sectors are finding that eNACH is more than just a tool for financial services. It is becoming the foundation for automated recurring payments in SaaS subscriptions, EdTech fees, wealth management plans, logistics contracts, and B2B marketplaces.

This article explores how eNACH is changing recurring payments for businesses, its significance for industries beyond lending and insurance, and how companies can use it for growth.

What Is eNACH and Why Does It Matter?

Before looking at its broader uses, let’s quickly understand how eNACH works.

eNACH is an electronic system that allows companies to set up recurring debit mandates directly with customers’ or partners’ bank accounts. Once a mandate is authorized whether through Aadhaar, net banking, or debit card authentication the business can collect payments automatically on a set schedule.

This addresses several challenges for businesses:

• No more manual follow-ups or collection delays.

• A standardized process across all major Indian banks.

• RBI and NPCI compliance ensures trust and security.

• High scalability for businesses handling thousands of recurring payments monthly.

In summary, eNACH provides predictability, compliance, and automation essential elements for any company managing recurring transactions.

The Limits of Old Use Cases: Lending and Insurance

It is unsurprising that lenders and insurers were the first major users of eNACH. EMIs and premiums are fixed, predictable, and time-sensitive, making them perfect for automated mandates. However, focusing only on these sectors overlooks a much broader potential.

Real change is occurring in sectors where recurring payments were previously managed manually or through inefficient methods. This is where eNACH is delivering significant value.

Expanding Horizons: eNACH Beyond Lending and Insurance

Here’s where it gets interesting. Let’s look at several industries where eNACH is now making a real impact.

1. SaaS and Enterprise Subscriptions

India is producing global SaaS leaders, but recurring billing in B2B SaaS is not as simple as swiping a card. Subscriptions can be high-value, contracts may amount to lakhs or crores annually, and failed payments can disrupt business operations.

With eNACH, SaaS providers can:

• Automate recurring collections for long-term contracts.

• Eliminate the risk of card expiries or failed international transactions.

• Improve monthly recurring revenue (MRR) predictability, giving CFOs greater confidence in their forecasts.

In a rapidly growing SaaS market, eNACH offers enterprises a reliable, bank-supported method for managing substantial recurring deals smoothly.

2. WealthTech and Investment Platforms

Systematic Investment Plans (SIPs), portfolio management services (PMS), and even digital gold purchases rely heavily on timely recurring debits. Missed payments do not just impact cash flow; they also diminish investor confidence.

eNACH simplifies this process by ensuring:

• Automated debit mandates for SIPs and investments.

• Flows that meet regulatory requirements aligned with SEBI guidelines.

• A better investor experience with fewer failed transactions.

For WealthTech platforms, eNACH is not merely about convenience. It directly influences assets under management growth and client trust, both vital for scaling in financial services.

3. Marketplaces and Aggregators

Consider B2B marketplaces or gig platforms where vendors, partners, or merchants require recurring fee deductions or profit-sharing settlements. Without automation, it becomes chaotic different banks, various cycles, endless reconciliation.

eNACH provides a solution by enabling:

• Standardized recurring collections from thousands of merchants.

• Consistent settlement cycles that keep everyone in sync.

• Less reliance on manual reconciliation, saving operations teams time.

Marketplaces depend on trust and liquidity. With eNACH, they can establish scalable, compliant recurring payment systems that maintain smooth operations across ecosystems.

4. EdTech and Institutional Payments

Recurring payments in education have always been a hassle. Parents managing multiple fee deadlines, institutions facing bounced cheques, and finance teams overwhelmed with paperwork is a common scenario.

Here’s what eNACH changes:

• Parents or students authorize a digital mandate once.

• Fees are automatically deducted on schedule.

• Institutions enjoy steady cash flow without having to chase payments.

For EdTech startups and traditional institutions, eNACH is not just a payment method; it serves as a revenue assurance mechanism.

5. Logistics and Supply Chain Contracts

Recurring payments are not just for consumer-facing industries. In B2B logistics, companies handle fleet rentals, warehousing fees, monthly service contracts, and supply chain retainers.

Instead of relying on manual invoicing and transfers, eNACH allows for:

• Scheduled debits for fixed contractual payments.

• Transparent records for compliance and audits.

• Stronger relationships with suppliers and vendors based on predictability.

This creates a beneficial situation where logistics companies achieve financial stability, and partners avoid the hassle of manual payments.

Why Enterprises Prefer eNACH Over Cards and UPI Autopay

You might wonder why not just use cards or UPI Autopay for recurring payments? Here’s the reality:

• Cards have limits, expirations, and higher failure rates, especially for large B2B transactions.

• UPI Autopay works well for small consumer subscriptions but isn’t always suitable for large enterprise contracts.

• eNACH, on the other hand, is linked to bank accounts, supported by regulators, and tailored for high-value recurring transactions. It minimizes friction for CFOs, ensures compliance for auditors, and builds confidence among partners.

• For businesses where recurring revenue is critical, eNACH provides a more stable foundation.

How eNACH Fits Into India’s Digital Trust Ecosystem

Recurring payments do not function in isolation. They are part of a larger digital trust framework that businesses require:

• KYC/KYB verification ensures that parties involved are validated.

• Escrow banking adds an extra layer of security for high-value contracts.

• Fraud Early Warning Systems (FEWS) help identify anomalies.

• API-driven transaction banking platforms connect everything into a unified workflow.

This is where platform-based solutions like Castler’s come into play, integrating eNACH, UPI Autopay, escrow, and multi-bank options in one place. For CFOs and product teams, this isn’t just payments it represents a complete financial infrastructure.

Real Benefits: Why eNACH Is a Game-Changer for Enterprises

What does all this mean in practice? For businesses, adopting eNACH provides:

• Improved cash flow: Payments arrive on time, easing working capital pressures.

• Lower operational costs: Less time spent pursuing payments or reconciling accounts.

• Better customer retention: Smooth payment processes reduce friction and turnover.

• Compliance confidence: Alignment with RBI, SEBI, and IRDAI means fewer regulatory concerns.

• Scalability: Whether it’s 100 mandates or 100,000, eNACH can manage it.

These are not minor advantages. They directly affect growth, profitability, and investor trust the lifeblood of B2B companies.

Wrapping Up: The Future of B2B Recurring Payments

Recurring payments have evolved from just an operational detail. They are now a strategic asset for companies aiming to scale confidently.

eNACH has already changed lending and insurance. However, its true potential lies in industries that rely on predictable revenue and long-term relationships - SaaS, WealthTech, marketplaces, EdTech, and logistics.

The question is not whether eNACH will have a larger role in B2B recurring payments. The question is which companies will embrace it early and leverage it for growth.

Next Steps: How Castler Powers eNACH for Enterprises

Companies don’t just need eNACH. They require compliant, API-driven, enterprise-ready recurring payment systems that operate across banks, integrate with existing frameworks, and grow with them.

That’s where Castler’s Payment Products suite steps in. With eNACH, UPI Autopay, escrow, digital challans, and fraud prevention systems all in one platform, Castler helps businesses streamline recurring collections while remaining compliant and prepared for the future.