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Discussion

Which of the following is not true about National Automated Clearing House (NACH)?

  • A.It is a centralised clearing system launched by the National Payments Corporation of India (NPCI).
  • B.It aims to replace and consolidate multiple existing Electronic Clearing Service (ECS) systems across India
  • C.NACH platform has been created to replace the Electronic Clearing Service (ECS) system
  • D.All of the above are true.

Answer: D

In Electronic Clearing Services (ECS), presentation and settlement is spread over 3-4 day period.
There are three types of ECS: Local ECS, Regional ECS, National ECS.
NACH is a centralised system, launched with an aim to consolidate multiple ECS systems running across the country and provides a framework for the harmonization of standard & practices and removes local barriers/inhibitors.

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