National Automated Clearing House (NACH) is a form of Electronic Clearing Service (ECS) which is available with core-banking enabled bank branches in India. NACH has primarily two variants viz. ECS Credit and ECS Debit. The facility is used by the bank customers for automatic debit to their account every month to pay certain bills like telephone bills, electricity bills, loan installments, insurance premiums, etc. The corporates/institutions also using the above system for making bulk payments of amounts towards the distribution of dividends, interest, salary, pensions, etc. which will be directly credited to beneficiaries’ bank account. There are four categories of electronic clearing services in India namely Local ECS, Regional ECS, and National ECS, and NACH. The former three categories of services are operated either by RBI or by the designated commercial banks based on geographical location of branches, the last one NACH runs on all India platforms operated by the National Payments Corporation of India (NPCI).
Very soon, on full implementation, all the existing ECS mandates will be moved to the NACH platform. NACH would replace and consolidate over 82000 core-banking enabled branches of 1000 plus banks under multiple ECS systems with a single set of rules for all participants, service providers, and users. However, no intervention from users will be necessary for the migration of the ECS suite to NACH. A web-based solution for electronic clearing services on all India platforms; NACH has many inbuilt security features and multiple levels of data validation facilities accessible to banks, financial institutions, corporates, Government as well retail customers. The new-fangled setup provides a range of benefits to the participants, some of which are listed below.
1.What is IMPS/ mobile phone banking?
2.What is Point of Sale (POS) business?
3.What is RTGS & NEFT transactions?
4.What is NACH (What is national automated clearing house)?
5.What is ECS credit/debit system?
6.What is RuPay card?
7.What is e-wallet?
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