What is NACH?
NACH or NACH full form National Automated Clearing House are facilities provided to Banks, Government, companies and other financial institutes to transfer payments that are electronic transactions, repetitive and periodic in nature and are high in volume. In India, it was started by National Payments Corporation of India.
There are two features of National Automated Clearing House:
NACH credit and NACH debit.
- NACH credit has an Online Dispute Resolution system that helps in resolving disputed parties.
- The National Automated Clearing House can perform ten million transactions in just one single day.
- NACH is a website solution for Banks, companies, government, and other financial institutes. When accessing the NACH website you can be assured that it is safe and secure. You can comfortably upload and download the files from the website.
- Corporate organizations have direct access to the NACH or National Automated Clearing House credit system.
- NACH credit systems are off on Sundays and other such holidays.
- Organizations can now easily track their transactions on NACH or National Automated Clearing House.
- National Automated Clearing House debit system consists of the online dispute management system
- The transactions on National Automated Clearing House debit are safe and secure in nature. They are safe between organizations and their parties.
- Organizations can track their transaction and have access to the transaction on NACH debit.
- NACH debit keeps the single confidential data of the users safe and secured.
What is an Automated Clearing House or ACH mandate?
- ACH or the ACH full form which is Automated Clearing House is run by NACHA or the National Automated Clearing House Association since 1974 in the US.
- It is an electronic fund transfer system. With the help of this system, transfer and direct deposits are possible.
- In the U.S, it was difficult for the banks to keep up with the cheques coming in so they came up with the Automated Clearing House system.
- In 2018, according to a report, around 23 billion electronic payments were done using Automated Clearing House. ACH is always safe for transactions.
What is ECS or Electronic Clearing System?
- ECS or the full form of ECS mandate, Electronic Clearing System is the facility used when transferring funds from one bank to another electronically.
- You can even do periodic transactions such as EMI loans, which can be done electronically.
- There are two types of ECS: ECS credit and ECS debit.
- ECS debit: With the help of ECS debit you can make payments such as EMI loans and SIP payments without writing cheques. The payments are done electronically.
- ECS credit: When an institution credits funds to your savings account it’s known to be ECS credit.
The Bottom Line:
National Automated Clearing House is a system through which corporates, banks, companies, and other organizations can transfer funds that are high in volume directly. NACH was first started in the U.S.
Automated Clearing House comes under NACHA or National Automated Clearing House Association. In India, Automated Clearing House is known as ECS or Electronic Clearing system.