All You Need To Know About " NATIONAL AUTOMATED CLEARING HOUSE "

N - NATIONAL
A - AUTOMATED
C - CLEARING
H - HOUSE
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N--National
P--Payments
C--Corporation of
I--India
is an organization, which meant to consolidate and integrate the multiple systems with varying service levels into nationwide uniform and standard business process for all retail payment systems.

⚫The other objective was to facilitate an affordable payment mechanism to benefit the common man across the country and help financial inclusion.

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⚫What is the difference between the ECS and NACH?
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⚫ In case of ECS, the process is manual. Hence, takes more time or verification issues. However, in NACH it is defined workflow, which reduces the time.

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⚫ In case of ECS, you will not get a unique mandate registration reference number. However, in NACH you get it and can be used for future reference.

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⚫In case of ECS, the possibility of higher rejection ratio. But due to less paperwork in NACH, rejection ratio is less.
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⚫ Settlement of payment, usually takes 3-4 days in ECS. But in case of NACH it will be settled on the same day.

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⚫There is no such dispute management system placed in ECS. However, in NACH it is well set and can be resolved issues easily.

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⚫ Registration of ECS usually takes around 30 days. But in NACH it is just 15 days.
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Ques?
Who are the participating banks?
⚫These are the live banks for which NACH is mandatory to adopt from 1st May, 2016. All core banking enabled banks are soon going to be part of this facility. Currently, all major banks are part of this NACH.

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Few other features of NACH facility are as below.
⚫Your NACH may get rejected due to an incorrect bank account, folio number or other incorrect details.
⚫It also gets rejected if the investor’s bank is not participating in NACH.
⚫You can stop NACH at any point of time by submitting the cancellation form.
⚫The default NACH mandate will be up to 31/12/2099.You can mention the frequency, amount and the date of last debit.  Also, can alter it at any point.

⚫You can register as many NACH as possible.
⚫There is no such limit.