Question
What is NACH in banking?
Solution
National Automated Clearing House (NACH) is a centralised system, launched by NPCI with an aim to consolidate multiple ECS systems running across the country. NACH System can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.
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