What is NACH

NACH refers to National Automated Clearing House (both debit and credit facility), which has been implemented by the NPCI. The banks who are registered members of RBI have to enter into mutual agreement with NPCI for the purpose. Such registered banks, known as Sponsor banks, are allowed to carry on transactions in NACH system. There are also Destination banks who have mutual agreement with NPCI and which are RBI registered. Such banks are permitted to process transactions and also process mandates and update Aadhaar Mapping. Other corporate and government departments will have to register themselves as user in National Automated Clearing House system.

Objectives of NACH

As you aware, NACH was made compulsory for your any payment, which is recurring in nature instead of a current ECS mandate. This applies to your SIP of Mutual Funds, Utility Bills, Insurance Premiums, Credit Card Bills, or any payment, which you feel recurring in nature. National Automated Clearing House (NACH) is a centralised system, launched with an aim to consolidate multiple ECS systems running across the country and provides a framework for the harmonization of standard & practices and removes local barriers/inhibitors. NACH system will provide a national footprint and is expected to cover the entire core banking enabled bank branches spread across the geography of the country irrespective of the location of the bank branch

The NACH system provides a robust, secure and scalable platform to the participants with both transaction and file-based transaction processing capabilities. It has best in class security features, cost efficiency & payment performance (STP) coupled with multi-level data validation facility accessible to all participants across the country. The other objective was to facilitate an affordable payment mechanism to benefit the common man across the country and help financial inclusion.

SOFT-TECH NACH Application

SOFT-TECH Solution developed NACH Application for NPCI’s NACH Product. It is a web-based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. NACH System can be 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.

Our NACH Application cover solutions for APBS, APBS Aadhaar Seeding, DBTL for GAS Subsidy, ONAM, ACH-Credit, ACH-Debit, MMS (Mandate Management System), CBDT etc. Our NACH Application has used by several Co-operative, Commercial and District Central Co-Op Banks.