Treasury News Network

Learn & Share the latest News & Analysis in Corporate Treasury

  1. Home
  2. Cash & Liquidity Management
  3. Cash & Liquidity Mngm in Asia-Pacific

HSBC is first to complete transactions on India’s new NACH payments system

HSBC Bank is the first bank to complete live customer transactions on India's new National Automated Clearing House (NACH) debit platform. Vodafone India, one of India's telecommunications service providers and two asset management companies, HSBC Asset Management Company and Reliance Capital Asset Management (RCAM), are the first customers to use this new infrastructure.

India's NACH system is an initiative by the National Payments Corporation India (NPCI). It incorporates functionality from existing systems around the world. With the NACH system in place, which is a significant upgrade on legacy platforms, customers can benefit from faster transaction settlement, wider coverage and superior mandate management system, resulting in greater efficiency and wider branch coverage across India – bringing a large area onto one, consistent and highly advanced system.

The creation of this new system, complemented by other innovations such as Interbank Mobile Payment Service (IMPS), also operated by the National Payments Corporation of India (NPCI) - plus its innovative identity verification scheme from few years ago - mean that India now has the robust payment platforms it needs to continue to grow.

User Comment
"The NACH Debit is an effective way to collect funds from our consumers spread across remote locations in India, as compared to electronic clearing system (ECS) debits," said Sundeep Sikka, chief executive officer (CEO) of one of the launch customers, Reliance Capital Asset Management. "Not only are mandates now registered within 3-4 days, as compared to 21-25 days previously, it also now covers all IFSC-enabled branches across India."

"The same-day transaction information also allows for the locking-in of the funds at the current day's net asset value (NAV), as compared to ECS debits where we receive information only after 3-4 days."

Like this item? Get our Weekly Update newsletter. Subscribe today

Add a comment

New comment submissions are moderated.