National Automated Clearing House Product since inception (2013) has come up with some many use cases and variants that it some time become confusing to understand what's actually going on.
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.
By means of NACH, NPCI aims to replace Electronic Clearing Service (ECS) systems across the country to make collection of payment simple and efficient.
Robust system with high volume processing capability,
Better liquidity management
One stop shop for push (credit) and pull (debit) transactions
Automated work flow (Host to Host Connectivity)
Response for all transactions for better reconciliation
Lifecycle of NACH
Variants of NACH
Create : - To register a new mandate
Amend : - To amend an active mandate
Cancel : - To cancel an active mandate
Overview of Recurring Payment