Is NACH different from ECS for cheque clearance?
NACH has been developed as a system having a standardized operating model for payment transfers. Each NACH transfer will generate a mandatory registration number making it easily traceable at all times. This is a welcome addition compared to ECS system where there was no system to track payments in real time. NACH will act as a fast payment system with same day presentation and settlement resulting in quick processing of financial
With the ECS system of cheque clearance, tracking real time payments is not possible. NACH, however, is a system that will have a standard operating model for all payment transfers. Every transfer that takes place via NACH will generate a registration number, which will make payments easy to trace at any time. In short, NACH will ensure that same day presentation and settlements will take place to ensure speedy processing of transactions.