Automated Clearing House system is known as Electronic Clearing Service (ECS) in India. ECS is now available at around 89centres in the country. While it is operated by the Reserve Bank of India at 15 centres, it is operated by the commercial banks at the remaining centres. With the introduction of National Electronic Clearing Service (NECS) by Reserve Bank of India, a centralized service, the reach of the system has further deepened and all the identified core banking branches of banks are participating in the system irrespective of whether it is located at the listed ECS centres.

NPCI proposes to build, implement and manage an Automated Clearing House (ACH) system with built-in security features and multiple level data validation facility accessible to all participants across the country. The new centralized ACH solution is expected to consolidate the current multiple ECS systems in due course of time and provide framework for removal of local barriers / inhibitors and harmonization of standards and practices.

ACH platform will have national footprint which will cover 82000+ bank branches. The platform will be robust, secure and scalable with both transaction and file based transaction processing capabilities. It will have best in class security features, cost efficiency & payment performance (STP) for all participants. We intend to create fully automated processes with the use of open standards and best industry practices. This will prescribe a single set of rules (Operating and Business), practices and standards which are common across the country for all Participants, Service Providers, and Users etc. ACH platform will support financial inclusion measures initiated by Banks, other financial institutions, Government etc. by providing support to UID and Mobile based ACH transactions. The proposed system would facilitate member banks to design their own products and also it will help to address specific needs of corporates withstrong information exchange along with payment itself and comprehensive and customised MIS.

NPCI is also proposing to build Mandate management framework which is envisaged to bring about significant improvement in the efficacy of the current mandate management processes and practices. An effective and uniform governance process based on stakeholder agreed operating/business rules and guided by the Central Bank (RBI) would drive the Mandate management system. The framework would encompass the entire national geography and all ACH participants.This mandate management system will have enhanced security features, ease in operations and will be sync with ACH transaction processing for business validations.

A Steering Committee is constituted with representation from leading banks, large corporates who are current ECS users to understand and deliberate various aspects of ACH infrastructure that helps to design the solution as per market requirements. Task Force Groups been constituted to focus on critical aspects such as Mandate Management , messaging standard , routing mechanism etc. to help Steering Committee to design and implement strategy of proposed ACH system.