What’s quicker – Getting NACH or Nachos? Let your fingers find out

Whether you are new to NACH, or wondering about NACH vs. ECS, you are parked at the right spot. Don’t worry, keep asking more

Justin Bieber’s voice was blaring from behind the heavy doors. They had been standing for half an hour now and the queue was only getting longer.

If his Dad had come along with them, he would have been horrified at the sight of these young faces lining up like prisoners for their precious bowl of soup. “So you pay for the ridiculously-expensive food and still wait in a herd!” he would have screamed. Armaan chuckled at the idea of explaining the delights of spending a weekend-evening at the latest-hottest water-hole -of-the-town to his Dad.

Usually, the young-ones lost. But the argument was always a better appetizer than those cheese-balls served inside. Drooling at the word, nonetheless, he recalled – where was the other part of ‘they’?

Unusually silent, Ankit, his cousin and his comrade for such parties, was eerily hunched over his Smartphone. The shoving of elbows and the nauseating deodorant of a heavily-tattooed hulk beside them did not seem to bother him today.

“What are up to Sri Sri Sri Ankit?”

Ankit’s head bobbed for a second as he answered absent-mindedly, “That Paysense loan we talked about last time, remember? Just finishing the last bit of that application…”

“Wow! So that’s what you have been up to! Smooth fingers!” Armaan beamed.

“Not really.” Ankit looked up disappointedly.

“Why?” Armaan peered over the phone and got a hint after spotting the word NACH.

“Hmm. So stuck at the e-sign step there? I have been there pal. The good old NACH vs. ECS fork.” He said as he flipped his own phone out.

“Yes. What exactly is this new creature?” Ankit looked around at the long queue for the first time and sounded extra-exhausted.

“No sweat my brat! ECS was the good old Electronic Clearing Service – the then mode of funds’ transfer from one bank to another. NACH  is National Automated Clearing House – a web-based solution, instead, which smoothens-a.k.a-fires up interbank, high volume, electronic transactions – the stuff that is often repetitive and periodic in nature (also for bulk transactions). Basically, it consolidates multiple ECS systems running across the country and wipes away local barriers/inhibitors.” Armaan spelt it all out.

Ankit was still not clear. “But why a new interface, a new complication? And how can I be up to snuff here?”

“It’s actually the opposite – the idea is to make things simpler.” Armaan dug in more. “ NACH allows member banks to design their own products and fix specific needs such as a refined Mandate Management System (MMS) or the much-needed online Dispute Management System (DMS). There is much less paperwork, a better workflow, faster activation time, and hence, less rejection-instances but snappier settlement time-windows –Think 3-4 days for ECS vs. 24 hours under NACH.”

“So how?” Ankit rubbed his hands eagerly.

“NACH OTM is a onetime mandate form. You can get it from an AMC and fill it up easily. All you need are Bank Details , Personal info, Folio Number, application number and some other info, as asked.”

WHAT IS NACH | PaySense | Infographic

“And is it safe?”

“Of course,” Armaan replied. “As safe as giving a cheque.”

Ankit scratched his chin. “You know what! If we have a choice between NACH vs. ECS; why don’t we try something faster for tonight’s party too? That fast-food truck we saw around the corner? It smelt nice there Man. And I don’t think I am used to standing in endless queues anymore.”

“Since when?” Armaan winked as he swung his coat around and started walking out of the worried-and-harried corridor.

“Since PaySense.” Ankit said with a flourish and they sped towards the most delicious Burritos ever – leaving all the slow-grilled steak  behind.