National Payment Corporation of India (NPCI) has implemented "National Automated Clearing House (NACH)" for Banks, Financial Institutions, Corporates and government a web based solution for facilitate interbank, high volume, electronic transactions which are repititive and periodic in nature.
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, insurance premium etc. NACH Debit Mandate is an ideal product for ensuring repayment of EMI of term loans of customers, whose Deposit Accounts including Salary Accounts are maintained with other Banks.