NACH

What does it mean?

NACH stands for National Automated Clearing House. It is a centralised electronic payment or transaction processing system by the NPCI (National Payments Corporation of India) for banks, governments, and financial institutions to easily manage cumbersome interbank payments, utility bills, SIPs, premiums, donations, credit card bills, dividends or any other recurring payments. It helps in maximizing the efficiency of the clearance of the mentioned repetitive payments.

Points to remember

• NACH payments may not be an available option if your bank is not a part of NACH. You can also cancel your NACH application anytime.
• NACH can also be used for bulk payments or receiving of payments like telephone bills, small loans, etc.