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Difference between NACH and ECS



National Automated Clearing House (NACH), a web based solution for Banks, can be used to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. This seems to be a much better fund transfer mechanism at the moment.
Electronic Clearing System (ECS), is an electronic mode of funds transfer from one bank account to another. It can be used by institutions for making payments such as distribution of dividend interest, salary, pension, among others. It can also be used to pay bills and other charges such as telephone, electricity, water or for making equated monthly installments payments on loans as well as SIP investments. ECS can be used for both credit and debit purposes.


Difference between NACH and ECS-

Since NACH aims to replace the existing ECS systems, now we discuss a few differences between the two systems are as under-
  • ECS is a manual process and, thereby, takes a lot of time and faces verification issues. In NACH, the workflow is defined and this helps save a lot of time.
  • Unlike ECS, NACH provides a unique mandate registration reference number which can be used for future reference.
  • NACH involves less paperwork, so the rejection ratio is less as compared to ECS.
  • With NACH, your payment gets settled on the same day, while ECS takes 3 to 4 days for the same.
  • NACH features a dispute-management system, which will resolve your issues easily, while ECS has no such systems in place.
  • NACH registrations take only 15 days, while ECS registrations take up to 30 days.


See the related post : Introduction about FASTag


Parmar Kirit Kumar on 2/22/2024 10:09:39 AM says:
सर मैं कनाडा एचएसबीसी से इंश्योरेंस लिया था उसमें मैं ही नाच के अंदर सिग्नेचर गलत किया था जो बैंक के साथ कनेक्ट नहीं है

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