What is NACH, ECS or NEFT in Banking System

  • ECS: Elecronic Clearing System
  • NACH: National Automated Clearing House

NACH (National Automated Clearing House) which is the upgraded version of ECS and introduced by National Payments Corporation of India, is a centralised clearing service that aims at providing interbank high volume, low-value transactions that are repetitive and periodic in nature. It has both transaction and file-based transaction processing capabilities. It has binded multiple ECS(Electronic Clearing System) or all the banks in India under one system.

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