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Migration from ECS to NACH

Thursday, April 14, 2016 by Indian Real Estate News

 
ECS to NACH


1 National Automated Clearing House (NACH) is a centralised clearing system launched by the National Payments Corporation of India (NPCI).

2 NACH aims to replace and consolidate multiple existing Electronic Clearing Service (ECS) systems across India and create a faster and more efficient clearing platform.

3 The various facilities offered by NACH include standardisation and digitisation of mandates, overall simplification, reduction of operational cost, and minimisation of activation time.

4 Existing ECS mandates will now be moved to the NACH platform, in partnership with the participating banks. However, no intervention from investors will be necessary in this regard.

5 NACH will considerably reduce the turnaround time that was previously required for activation of ECS mandates, as well as significantly simplify Aadhar-based benefit transfers.

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