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The full form of NACH is the National Automated Clearing House. It is an automated system that has made the fund clearance process easier. With the advancement of technology, we all shifted towards making payments using UPI or net banking instead of using cash. UPI is a convenient method of payment for customers as well as banks. All this is possible just because of the National Payments Corporation of India. It has created the platform for fund clearance i.e. NACH. Read the article to know more about NACH full form!
Also Read: What is the full form of ULSI?
What is NACH?
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National Automated Clearing House (NACH) is a centralized system. It was developed by NPCI (National Payments Corporation of India). NACH was developed to regulate bulk automated payments.
As customers, people take various services and some of the services are loans and utility bills. These type of services requires repetitive payments and they could be automated using NACH.
It means that, if you have NACH activated for your account, the recurring payment amount can be auto-debited from your account. Thus, NACH makes the payment process convenient and it also saves time involved in making payments manually.
Prior to the launch of NACH, customers had to make the payment manually by visiting the bank. But now, one needs to submit a mandate and the rest will be assured and done automatically.
What are the Types of NACH?
There are two types of NACH as listed below:
- NACH Debit
- NACH Credit
Also Read: What is the Full Form of BIMSTEC?
Importance of NACH
NACH plays a crucial role in streamlining and modernising the transactions of money and it also offers security and convenience. Listed below are the main important features of NACH:
- Efficiency in Transactions
- Modernized Technology
- User-Friendly Security
- Swift Functionality
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