Recurring payments are essential to India’s expanding digital economy. Whether it’s a monthly loan EMI, an insurance premium, or a subscription fee, the ability to debit funds automatically and securely is crucial for businesses and consumers. That’s exactly what eNACH (Electronic National Automated Clearing House) offers.

Managed by the National Payments Corporation of India (NPCI) and regulated by the Reserve Bank of India (RBI), eNACH enables businesses to collect recurring payments directly from a customer’s bank account through an approved mandate. It eliminates paperwork, reduces errors, and ensures timely collections without manual intervention.

Here’s the reality: not every industry uses eNACH in the same way. Some depend on it for survival, while others leverage it for efficiency and growth. Let’s break down the top industries benefiting from eNACH mandates, why it matters, and how this digital infrastructure shapes their future.

Lending and NBFCs: Solving the Collections Puzzle

No industry has embraced eNACH as fully as lending. For banks, NBFCs, and fintech lenders, collecting repayments is a major operational challenge. Traditional methods like physical post-dated cheques and cash collection agents often led to defaults, delays, and fraud.

eNACH changes this completely. Once a borrower approves a mandate, EMIs are automatically debited on the agreed date. This helps lenders:

• Reduce delinquency rates since payments are automated.

• Save on collection costs by eliminating manual follow-ups.

• Build borrower discipline, improving credit histories.

For borrowers, eNACH is equally beneficial. They no longer need to remember due dates or worry about bounced cheques. It’s a win-win. That’s why eNACH adoption in lending is not just widespread; it’s foundational.

Insurance: Making Premium Payments Frictionless

Insurance is another sector where recurring payments are vital. Customers must pay monthly, quarterly, or annual premiums to keep policies active. Missed payments can lead to lapsed policies, posing financial risks for families and businesses.

eNACH mitigates that risk. Once a mandate is established, premiums are automatically debited on the due date. This guarantees steady cash flow for insurers and reduces policy lapses. For customers, it offers peace of mind knowing they’re protected without the hassle of manual payments.

The scale is significant. According to IRDAI, India’s insurance penetration is steadily increasing, and digital payment systems like eNACH are key to that growth. By ensuring reliability and compliance, eNACH strengthens customer trust in long-term insurance products.

Mutual Funds and SIPs: Building the Wealth Habit

Systematic Investment Plans (SIPs) are among the most popular investment products in India. They rely entirely on recurring contributions. The success of SIPs which exceeded ₹19,000 crore per month in inflows in 2024 (AMFI data) is directly linked to mechanisms like eNACH.

Investors can set up a mandate once, and their SIP amount gets deducted automatically every month. This automation does more than provide convenience:

• It promotes financial discipline by making investments the default choice rather than optional.

• It reduces missed contributions, allowing compounding to work effectively.

• It enables asset management companies to plan cash flow more effectively.

Without eNACH, the rapid growth of SIPs in India would not have been possible at this scale.

Subscription Businesses: Fueling the Digital Lifestyle

Consider your daily routine: Netflix, Spotify, news apps, cloud storage these are all subscription-based services. Adding gyms, co-working spaces, SaaS platforms, and OTT channels to the list shows how the subscription economy thrives on recurring payments, with eNACH as one of its key drivers.

For businesses, eNACH reduces customer churn caused by failed or forgotten payments. Instead of pursuing customers to renew, they get paid on time, every time. For customers, it guarantees uninterrupted access to valued services.

Globally, the subscription economy is expected to reach $1.5 trillion by 2025 (World Economic Forum), and India is quickly catching up. eNACH ensures Indian subscription businesses can grow without the hassle of manual renewals.

Education and EdTech: Enabling Affordable Learning

Education is increasingly adopting flexible fee structures, especially in higher education and professional courses. Instead of lump-sum payments, many institutions now offer EMI-based fee collection. EdTech platforms also depend on recurring subscriptions for learning apps and online coaching programs.

Here’s where eNACH plays a critical role. Parents and students can authorize mandates that spread fees into manageable installments, while institutions and EdTech firms receive guaranteed revenue. This predictability helps schools and platforms budget better and focus on delivering quality education rather than chasing collections.

In India, where affordability drives education adoption, eNACH is helping democratize learning by making payments easier.

Healthcare: Supporting Patient Financing and Subscriptions

Healthcare is no longer just about emergencies. Preventive care packages, wellness subscriptions, and financing for elective procedures are growing rapidly. Hospitals and health-tech platforms increasingly let patients pay via EMIs or recurring payments.

With eNACH mandates, healthcare providers can collect payments smoothly, allowing patients to focus on recovery instead of worrying about bills. For wellness programs like annual health checkups or monthly physiotherapy subscriptions, automated debits ensure continuous care.

In a sector where trust and reliability are vital, eNACH is becoming a financial backbone.

Real Estate: Simplifying Long-Term Payment Commitments

Buying property often involves structured payment plans, especially for under-construction projects. Real estate developers and housing finance companies use eNACH mandates to ensure timely collection of installment payments.

Customers benefit from predictability. They no longer need to manually transfer large sums every few months; instead, payments are scheduled and automated. This builds trust among developers, lenders, and homebuyers.

Real estate is usually seen as slow to embrace technology, but eNACH is proving to be a tool that simplifies its financial operations.

Utilities and Telecom: Everyday Payments Made Easy

Monthly bills electricity, gas, mobile, broadband are classic examples of recurring payments. For decades, these relied on manual bill payments or standing instructions via banks. eNACH has transformed this process into a digital and unified approach.

Utility companies benefit from reduced late payments and lower operational costs, while customers never miss a bill cycle. The integration of eNACH with the Bharat Bill Payment System (BBPS) is further enhancing the reliability of automated billing.

This is where eNACH reaches millions of Indian households directly.

Why These Industries Are Leading eNACH Adoption

So why are these sectors leading? They share three key traits:

• Recurring payments are central to their business models.

• Customer convenience directly influences retention.

• Operational efficiency and compliance are essential.

This combination makes eNACH not just useful but critical.

Conclusion

The adoption of eNACH will deepen as India moves toward a $10 trillion digital economy vision. From micro-loans to large-scale subscription businesses, eNACH will continue to serve as the infrastructure that makes recurring payments effortless, compliant, and scalable.

Here’s the larger point: as industries evolve, trust will remain central to financial transactions. eNACH provides that trust layer for recurring payments, and when combined with escrow solutions, it becomes even more effective.

Where Castler Fits In

eNACH mandates are transforming how industries collect and manage recurring payments. From lending and insurance to education and subscriptions, automating collections is now a necessity.

Castler provides the trust infrastructure that complements systems like eNACH. By combining escrow solutions with regulated payment flows, Castler ensures industries can automate payments while maintaining security, compliance, and transparency at the core.

If you want to explore how escrow and eNACH can benefit your business, discover Castler’s solutions today.