NACH is a centralized system developed by the National Payments Corporation of India (NPCI) to facilitate bulk automated payments. Many repetitive payments like loan EMIs and utility bills can be automated with the help of NACH. Automation of recurring payments means the amount will be auto-debited from a customer’s account if NACH is activated. This system makes payments convenient and reduces the time involved in making manual payments for every bill generated.
Explore the features and advantages of the NACH Mandate. A transformative tool benefiting customers, banks, and organisations through streamlined payments, security, and convenience.
There are two types of NACH that can be activated to transfer funds electronically.
Used for collecting recurring payments from a large number of customers. Common uses include:Loan EMIs (Equated Monthly Instalments),Insurancepremiums,Utility bills (electricity, water, gas, phone),Systematic Investment Plans (SIPs) in mutual funds
Used by institutions to disburse bulk payments to many beneficiaries through a single transaction. Common uses include: Salary and Pension disbursements,Dividend and interest payments,Government subsidies and welfare benefits (Direct Benefit Transfer via the Aadhaar Payment Bridge)
