BANKING AFFAIRS

Detailed explanation-1: -NACH System can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.

Detailed explanation-2: -NACH Credit is an electronic payment service used by an institution for affording credits to a large number of beneficiaries in their bank accounts for the payment of dividend, interest, salary, pension etc. by raising a single debit to the bank account of the User Institution (Corporate registered for NACH Services).

Detailed explanation-3: -NACH’s full form is National Automated Clearing House, and this solution was established by the National Payments Corporation of India (NPCI). NACH enables easy transfer of funds between banks electronically.

Detailed explanation-4: -Payment and settlement systems play an important role in improving overall economic efficiency. They consist of all the diverse arrangements that we use to systematically transfer money-currency, paper instruments such as cheques, and various electronic channels.

Detailed explanation-5: -Immediate Payment Services (IMPS) is a real-time interbank electronic fund transfer service capable of processing person to person (P2P), person to account (P2A) and person to merchant (P2M) transactions. Individuals can make payments 24x7 using their mobile number, Aadhaar number, bank account and IFSC code.