UMRN Full Form in Banking

What is the Full Form of UMRN in Banking?

Thе Full Form of UMRN in Banking is Unique Mandate Reference Number. It is linked to the creation of your NACH mandate. When you create your mandate, the NACH system automatically generates the UMRN. This shall allow you to latеr rеviеw and amеnd thе dеtails of your mandatе. Thе “National Automatеd Clеaring Housе (NACH)” is a digital paymеnt facility that thе National Paymеnts Corporation of India has set up for businеssеs, banks, financial institutions, and govеrnmеnt agеnciеs. NACH is offered for both credit and debit transactions. The objective of NACH (Debit) & NACH (Credit) is to make large volume, routine, and bulky debit/credit transactions possible, secure, and efficient.

Is UMRN Mandatory for Every Transaction?

Yes, UMRN is mandatory for every transaction and even during mandate amendment and cancellation. The four components of the UMRN number are the sequence number, bank code, customer ID, and mandate ID. This reference number guarantees the correct and secure processing of payments by tracking and identifying the particular mandate that the customer has set up. For customers as well as banks, the UMRN facilitates a smooth and effective payment procedure. It is a vital part of the electronic payment system and is essential to making sure that recurring payments go smoothly.

Benefits of UMRN

UMRN is needed for all transactions, including the amendment and revocation of mandates. The benfits of UMRN are

  • It ensures the accuracy and security of electronic fund transactions
  • With its help, every transaction is monitored to ensure that the customer’s requests are met. By doing this, errors and fraudulent transactions are avoided.
  • For banks and other financial institutions, it also facilitates accurate processing of customer mandates and payment reconciliation.
  • Additionally, the UMRN number is required for answering queries and resolving issues. If a customer has any issues with a recurring payment, they can easily trace the transactions they made using the UMRN number.