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.
By means of NACH, NPCI aims to replace Electronic Clearing Service (ECS) systems across the country to make collection of payment simple and efficient.
Benefits
Robust system with high volume processing capability,
Cost effective
Better liquidity management
One stop shop for push (credit) and pull (debit) transactions
Corporate portability
Automated work flow (Host to Host Connectivity)
Response for all transactions for better reconciliation
Lifecycle of NACH
Variants of NACH
Actions
Create : - To register a new mandate
Amend : - To amend an active mandate
Cancel : - To cancel an active mandate
Registration Process
Overview of Recurring Payment
Sources: -
https://www.npci.org.in/what-we-do/nach/product-overview
https://blog.digio.in/2020/03/nach-mandates-all-you-need-to-know.html
https://blog.bankbazaar.com/understanding-national-automated-clearing-house-nach/
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