NACH, commonly known as the National Automated Clearing House, is a centralised electronic payment or transaction processing system by the NPCI (National Payments Corporation of India).
The system was established for banks, governments and financial institutions to easily manage cumbersome interbank payments, utility bills, SIPs, premiums, donations, credit card bills, dividends or other recurring payments. It helps maximise the efficiency in the clearance of repetitive payments like the ones mentioned above.
Electronic National Automated Clearing House or E-NACH is the electronic payment mandate that makes recurring payments easier. It does not require paperwork; you can do it through a one-time registration using your banking details. This way, you can set up automatic deductions of your EMIs, utility bill and credit card payments, SIPs and more.
The NACH payment service offered by the National Payments Corporation of India allows you to reduce the time spent handling repetitive payments. Once you submit the mandate, you allow banks or merchants to automatically deduct the requested amount, at fixed intervals, from your bank account.
NACH credit is when merchants or institutions pay multiple beneficiaries electronically with a single debit. This helps businesses to make multiple transfers, such as salary, interest, premiums and more, in a centralised way.
NACH mandate is a form you fill up to authorise automatic transactions (NACH debit/credit) of a fixed amount at fixed intervals. Institutes request this form to put the payment system in motion.