NACH Debit – India’s ePayment Highway for Digital Transactions

          It is said that numbers do not lie and the numbers say everything. The below are the number of Banks on NPCIs’ NACH Debit platform.

 

ACH Debit Banks
CO-OP	188
FOREIGN	16
LAB	1
PRIVATE	19
PSB	21
RRB	8
Grand Total	253

 The first ACH debit transaction was executed in July 2013 with 88 transactions. Within a span of 20 months the volumes rose to Seven lacs +.

There has been tremendous growth in the last six months. Month on month, there is an increase of 1,00,000 transactions.

 

ACH Debit Volumes
Sep-14	Oct-14	Nov-14	Dec-14	Jan-15	Feb-15
252657	337578	419165	509293	595553	719400

 There have intense discussions amongst NPCI, Banks and Billers on the ways and means to increase safe ACH Debit transasctions.

 

Billers are building products designed to take the best of NACH Debit.

The mutual fund industry is quickly adapting to the NACH Debit platform to encourage investors to move funds from their bank accounts to the mutual funds in a safe manner.

In the next couple of  months, a large number of billers are expected to sign up on the NACH Debit Platform.

The primary infrastructure has been stabilised and the system has enough capacity to handle more than 10,00,000/- transactions per day.

Billers are also gearing to flash a number of alerts to ensure a high success rate.

NPCI has removed 4 irrelevant return codes from the NACH Debit platform. The four codes are

a)     No such account

b)    Account description does not tally

c)     Mandate not received/UMRN does not exist

d)    Invalid Account(NRE/PPF/CC)