NACH vs ECS – Kind of like Sneakers vs Heels
Less paper – more work. Less questions – more transactions. Less friction – more traction
Murder was never a thought that crossed his mind. But today, he was just a few inches away from the cliff’s edge.
For the last hour, Ankit’s boss had been playing the most-dreadful pillion-driver Armaan had ever endured. Every turn, every signal and every gear had been commented upon and butchered with machine-gun-like criticism. He was just hoping to veer off to the highway so that all this torture can be put to rest.
Driving in a city; and with extra-smart drivers to top that – no Armaan did not sign up for this when he had agreed to give Ankit a lift to the next town today. Of course, it was on his way to his Granny’s farm-house; but listening to this cackling, non-stop, was out of his way.
Specially when Ankit did not lend any hand (to gag his boss’s mouth at least).
“What are you busy with Bumble-bee?” He asked a distracted Ankit in the hope of shifting the conversation from the hopeless and flesh-greedy toll-booths (in the words of that boss) to something else.
“Armaan! Did you know about ECS when you signed up through NACH for your loan? Ever since I signed one myself, I have learnt so much about NACH vs ECS.” Ankit kept swiping on his palmtop and enlightening him.
“Yeah, did I not tell you how ECS was the good old Electronic Clearing Service – the erstwhile way of funds’ transfer from one bank to another and how NACH is National Automated Clearing House – the new web-based solution that consolidates multiple ECS systems running across the country and wipes away local barriers/inhibitors?” Armaan replied- as he sheepishly changed gears safe from the boss’s eye.
“You did. So it was actually brought in to solve problems ECS encountered – All that paperwork and workflow-worries. I did not know though that a Unique Mandate Registration Reference Number was not needed in ECS but it is in NACH?”
“Yes, so that this number can be used for future transactions.” Armaan explained. “Like I told you NACH is faster. If ECS takes 3-4 days, a settlement happens within 24 hours under NACH. In fact, this can entail Aadhaar eSign and a validation engine for the bank to complete the verification. Signature mismatch is, often, a rejection reason for wet-signature-based physical mandates; but this would not be the case so much here as it is pre-authorised and digitally encrypted.”
“Neat! Also, as I can see here NACH has an online dispute management system which was not the case with ECS.”
“True.” Armaan translated. “It means that what you go through during loan application and experience is less thorny, more swift and highly secure. Speed equals convenience, you see.”
“Like this highway?” Ankit pointed out as he watched the car smoothly entering a fast lane.
The boss was busy thinking of some sound advice to shower upon as Armaan rolled through the road as if on a skater-board.
“You can always use a better road to shut someone up.” Armaan thought to himself and stared down at the boss from the mirror. “You do not always have to use the car-trunk.”
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