National Payments Corporation of India (NPCI), the nation's umbrella body for all retail payments, today said it has crossed a major milestone of bringing 1,000 banks under its network.
The enlisting for one of the corporation's key service offering called the national automated clearing house (NACH) system, which is a centralised system launched aimed at consolidating multiple ECS (electronic clearing service) systems running across the country in a decentralised manner.
The NACH is a web-based solution that facilitates interbank, high volume, electronic transactions and empowers banks, financial, corporate and government institutions for making bulk transactions including distribution of subsidies, dividends, interest, salaries, pension etc apart from utility bill payments as well as loans, MF investments, insurance premium etc.
"NACH plays a key role for processing bulk payments. With over 1,000 member-banks now, we are all set to support government efforts at modernising payment standards and digitising money transfers.
The NACH system provides a national footprint and is expected to cover the entire core banking enabled bank branches irrespective of the location of bank branches," said NPCI chief AP Hota said.
The NACH is being used by the government to make its Aadhaar-based payments to implement direct benefit transfer schemes covering schemes like the MNREGA, social security pension, old age pension, LPG subsidy etc.
"With 1,000 plus banks already in the network, it will now be simpler to cover all these banks for all services of NPCI -- RuPay, IMPS, NFS, AePS, eKYC for optimum utilisation of the network already created," added Hota.