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Nach

National Payments Corporation of India (NPCI) implemented the National Automated Clearing House (NACH) as a web-based solution to facilitate high-volume, repetitive electronic transactions between banks, financial institutions, corporations, and the government. NACH functions as an electronic clearing service, especially for banks, facilitating interbank transactions. It was launched by NPCI to automate the clearing of millions of daily payment transactions between individuals, corporations, and the government in a centralized, standardized system.

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417 views8 pages

Nach

National Payments Corporation of India (NPCI) implemented the National Automated Clearing House (NACH) as a web-based solution to facilitate high-volume, repetitive electronic transactions between banks, financial institutions, corporations, and the government. NACH functions as an electronic clearing service, especially for banks, facilitating interbank transactions. It was launched by NPCI to automate the clearing of millions of daily payment transactions between individuals, corporations, and the government in a centralized, standardized system.

Uploaded by

S Ganesan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NACH NPCI

National Payments Corporation of India


(NPCI) has implemented “National
Automated Clearing House (NACH)” for
Banks, Financial Institutions, Corporates
and Government a web based solution to
facilitate interbank, high volume, electronic
transactions which are repetitive and
periodic in nature.
FUNCTIONS OF NACH

 NACH is a web based platform to facilitate


interbank, high volume, electronic transactions
for Banks, Financial Institutions, Corporates
and Government. It basicallyfunctions like an
electronic clearing service available especially
for banks. NACHwas launched by the National
Payment Corporation of India (NPCI).Oct 22,
2017
WHAT IS NACH

Millions of payments transactions are taking place


in the banking system daily. These payments are
done by the individuals, corporate and
government; and clearing them will be a huge
task. For convenience, the clearing of these
payments should be done electronically. Such an
electronic clearing system was developed by the
National Payment Corporation of India (NPCI) and
it is known as National Automated Clearing House
(NACH).
NACH [ CONTINUED ]
 NACH was launched by the National Payment Corporation
of India (NPCI). It is very useful to clear bulk and repetitive
transactions that takes place among banks.
 NACH System is used for making bulk transactions
towards distribution of subsidies, dividends, interest,
salary, pension etc. and also for bulk transactions towards
collection of payments pertaining to telephone, electricity,
water, loans, investments in mutual funds, insurance
premium etc.
 NACH has two wings – ECS Credit and ECS Debit.
Similarly, local, regional, national ECSs are also
operational.
FEATURES OF NACH

NACH is a centralised system, with an aim


to consolidate multiple Electronic Clearing
Systems (ECS) running across the country.
It provides a framework for standard and
practices for clearing and removes local
barriers for payments. NACH system covers
the entire core banking enabled bank
branches of the country irrespective of the
location of the bank branch
FEATURES OF NACH [ CONTD ]
 Under NACH, the NPCI provides a single set of rules
(operating and business), common across all the
Participants, Service Providers and Users etc. NACH
system also supports Financial Inclusion measures
initiated by Government and different agencies.
 The NACH system helps member banks to design their
own products besides addressing specific needs of the
banks and corporates. It also has a Mandate Management
System (MMS) and an online Dispute Management System
(DMS) coupled with strong information exchange and MIS
capabilities.
FEATURES OF NACH [ CONTD ]
 NACH is a robust, secure and scalable platform to
the participants with both transaction and file
based transaction processing capabilities.
 NACH’s Aadhaar Payment Bridge (APB) System
has been successfully channelizing Government
subsidies and benefits (DBT) to the intended
beneficiaries using the Aadhaar numbers. The
APB System links the Government Departments
and their sponsor banks on one side and
beneficiary banks and beneficiary on the other
hand.
THANK YOU

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