What is the Full Form of NACH

Full Forms

Full Form of NACH

NACH Stands for National Automated Clearing House NACH is a web-primarily based totally platform to facilitate interbank, high volume, digital transactions for Banks, Financial Institutions, Corporates and Government. It is a centralised clearing service that offers interbank high volume, low cost transactions which are repetitive and periodic in nature.

full form of NACH


  • NACH came into existence in May 2016.
  • It is replaced by Electronic Clearing System (ECS).
  • It has been established by National Payments Corporation of India (NPCI).

Wings of NACH

It has Mainly two wings.

1. NACH Credit:

  • NACH credit system has dedicated online dispute control system, that is completely secure as well as secure for online access.
  • It is absolutely capable of performing ten million transactions every single day.
  • It enables the users to download and upload files with lots of ease and that too in real-time.
  • It is closed on every Sunday and such other holidays.
  • It assists groups in easily monitoring their payments.

2. NACH Debit:

  • NACH debit system also has a dedicated online dispute management system, which ensures the security of the user’s single confidential data.
  • It is having a unique mandate reference number which allows the users to simply track more than 1 payment.
  • It ensures safety as well as secure transactions b/w an organization and its parties.


Members of NACH system has been categorized into 3 entities:

  1. Sponsor banks: They are only allowed to originate transactions which the system requires. They are having a mutual agreement with NPCI and are the participants of any payment system that's accepted by Reserve Bank of India (RBI).
  2. Destination banks: They are only allowed to do transaction, process mandates and update the Aadhar mapper through the use of the system. On a certain agreement, all the banks that are members of any payment system can take part on NACH system as Destination Banks.
  3. Corporate/government departments: On the submission of necessary agreement with their Sponsor Banks, corporate or government departments can take part on NACH system as Users. For this, the departments indicate the names of the Sponsor Banks with whom the accounts are maintained to facilitate the settlement on their behalf.

Application NACH

  1. NACH gives credit and debit service to corporates, banks, and monetary institutions, the service
  2. It integrates all regional ECS into one National Payment System
  3. It is better than its predecessor, Electronic Clearing Service
  4. It may be used for making bulk transactions closer to distribution of subsidies, dividends, interest, salary, pension
  5. It also can be used for bulk transactions closer to collection of payments referring to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.

Facts about NACH

  1. System of NACH produce a technology platform to banks to route the debit / credit instructions through NPCI using IFSC Code / MICR Code / IIN Code or any other code as may be determined from time-to-time.
  2. All applicants to NACH system have to pay a membership fee and any other fee as may be decided by NPCI from time-to-time.
  3. Indian Postal Department is also a NACH member.
  4. National Automated Clearing House (NACH) payment system are available on all days of the week from 1 August.

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