FinTech Glossary

What Is NACH?

NACH is a centralised clearing system in India that facilitates high-volume, recurring payments such as salaries, EMIs, dividends, and utility bill collections through automated debit and credit instructions.

How NACH Works

Businesses register mandates authorising periodic debits or credits. Once approved, transactions are processed automatically on scheduled dates. NACH supports both debit and credit use cases and replaces legacy ECS systems. It is widely used by banks, corporates, and financial institutions.

Why NACH Matters

NACH improves operational efficiency by automating repetitive payments and collections. It reduces manual intervention, lowers error rates, and ensures timely execution. For businesses with recurring obligations, NACH improves cash flow predictability.

Business Context and EnKash Relevance

NACH-based payments are common for salaries and recurring payouts. EnKash complements such workflows by providing visibility into payment schedules, approvals, and related spends, helping finance teams maintain control over recurring financial commitments.