national automated clearing house (nach) an overview by vsoft

NACH Mandate Management An Overview

VSoft Technologies Pvt. Ltd.

2

NPCI – NACH Objectives

A Centralized Platform across the country

Harmonizes Standard & Practices in ACH Payments

Consolidates multiple ECS Systems across the country

Provide National footprint to all CBS enabled banks.

3

NACH System Overview

• Facilitates interbank, high volume, electronic transactions

which are repetitive and periodic in nature.

• NACH Credit: Distribution of subsidies, dividends, interest,

salary, pension etc.

• NACH Debit: Collection of payments pertaining to telephone,

electricity, water, loans, investments in mutual funds,

insurance premium etc.

• Participants: Banks, Financial Institutions, Corporate and

Government

NACH Process Flows

5

Mandate Initiation: Sponsor Bank

Corporate

Sponsor

Bank

NPCI NACH Network

4

5

6

7

9

10

11

1

Customer Initiates Mandate

through Corporate

Destination

Bank

2

Back-end

Digitization of

physical

mandates

Files Sent to

Destination

Bank

UMRN

generated by

NACH System

Data & Image files

sent to NACH

Verification &

approval of

mandates

Updates corporate

with detailsCorp. sends

mandate to

Sponsor

Bank

Returns file sent

to Sponsor Bank

Returns Files

Send to NACH

3

Mandate status updated

in NACH

Sponsor Bank Initiated Mandate Flow

812

Mandate Status

Updated

6

Mandate Initiation: Destination Bank

Corporate

Sponsor

Bank

NPCI NACH Network

4

5

6

7

8

9

10

11

1Customer Initiates Mandate

through Destination Bank

Destination

Bank

2Back-end

Digitization of

physical

mandates

Verified

image/data

sent to NACH

UMRN

generated by

NACH System

Verified files sent to

Sponsor Bank

Verification

& approval

of mandates

Updates

corporate

with

details

Corp. updates

database &

sends

confirmation

response to

sponsor bank.

Sponsor Bank updates

database & sends

confirmation

Confirmation of

mandate status

sent to Destination

Bank

3Mandate status

updated in NACH

Destination Bank Initiated Mandate Flow

Centrum Mandate Enabled ACH Payments System

8

Product Vision

9

Overview of Features

End-to-end Solution• Image Based Mandate Management Module• ACH Transaction Management Module• Fully Compliant with NPCI Guidelines

Easy Administration• Common Console for user setup and security configuration• Configurable Product-based ACH transaction processing • Corporates and Corporate Users setup

Comprehensive Mandate

Management

• Initiation and acceptance of mandates • Compliant with multiple scanner types• Intelligent image analysis, auto repair & duplicate detection • Outward and inward mandate management • MIS & Analytics

Value Added Services

• Corporate Interface for Direct Mandate Upload• Net position monitoring facility for Corporates• Automated alerts and feedback for Corporate users

Comprehensive ACH Transactions

Management

• Outward and inward ACH transaction management • Wide range of transaction types – ACH, APBS, ECS and EBT• Rich MIS & Analytics • ISO 8583 Compliant Interface to CBS for ACH transaction posting

10

Product RoadmapP

roduct F

eatu

re E

volu

tion

Version 1.0: • Mandate Management– O/w & I/w processing– Lifecycle Management – Archival & Research

• Transactions Management– O/W & I/W processing – Archival & Research

• Corporate Access – Status Reports – Transaction upload

Version 2.0: • Charges Module – Itemized reports– Charges logic – Invoicing

• End user alerts – sms alerts – email alerts

• Customized Process Flows