|Definition||:||National Automated Clearing House|
|Category||:||Business » Banking|
What does NACH mean?
National Automated Clearing House (NACH) is an electronic clearing system in India, set up by the National Payment Corporation of India (NPCI) to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. It is useful for corporate and financial institutions that make payments in bulk, like salaries, dividends distributions, interests, and pensions. NACH system can be used for the collection of payments pertaining to telephone, electricity, water, loans, insurance premium, etc. The bills of the customers who have registered under it will be cleared automatically from their bank accounts.
Frequently Asked Questions (FAQ)
What is the full form of NACH?
The full form of NACH is National Automated Clearing House