UMRN Full Form in Banking, What Does UMRN Stand For?
UMRN full form in banking is Unique Mandate Reference Number. This is to be paid for each new mandate generated in NACH debit and generated by the NACH system during mandate creation. UMRN is required during the cancellation and modification of the mandate and for every transaction.
NACH debit makes it easy for the corporate to collect water bills, electricity, telephone, tax collections, periodic investments in mutual funds, insurance premiums, and loan installments. It has various key features, including:
- Electronically mandated information exchange and automated processing with known timeliness for confirmation.
- Each Mandate is uniquely identified by UMRN, making it easy for users to track information.
- Each mandate needs to be well-defined by the Debtor Financial Institution before the User can initiate the transaction.
What Else Should You Know About UMRN?
Unique Mandate Reference or UMRN allocated by the creditor to the user. One can find it by contacting the creditor directly. This is a unique code, a sequential number for example. It is assigned and created to a mandate. Mandate reference is shown to the debtor when a direct debit is debited. Combined with the creditor ID number, this allows the direct debit to be owed to the debtor.