5 smart things to know about migration of banks from ECS to NACH

Migration of banks from ECS to NACH will considerably reduce the turnaround time for activation of ECS mandates and simplify Aadhar-based benefit transfers.
1. National Automated Clearing House (NACH) is a centralised clearing system launched by the National Payments Corporation of India (NPCI).
2. NACH aims to replace and consolidate multiple existing Electronic Clearing Service (ECS) systems across India and create a faster and more efficient clearing platform.

3. The various facilities offered by NACH include standardisation and digitisation of mandates, overall simplification, reduction of operational cost, and minimisation of activation time.

4. Existing ECS mandates will now be moved to the NACH platform, in partnership with the participating banks. However, no intervention from investors will be necessary in this regard.

5. NACH will considerably reduce the turnaround time that was previously required for activation of ECS mandates, as well as significantly simplify Aadhar-based benefit transfers.

(The content on this page is courtesy Centre for Investment Education and Learning ( CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
Source : ET wealth