The document provides an overview of the NACH (National Automated Clearing House) management system by Vsoft Technologies, detailing its objectives and processes for facilitating high-volume electronic transactions across banks in India. It describes the types of transactions involved, including NACH credit and debit functions, as well as the steps for mandate initiation and management, ensuring compliance with NPCI guidelines. Additionally, it outlines the product's features, including user administration, mandate management, and a roadmap for future enhancements.

1. NACH Mandate Management
An Overview
VSoft Technologies Pvt. Ltd.

2. NPCI – NACH Objectives
A
Centralized Platform across the country
 Harmonizes
Standard & Practices in ACH Payments
 Consolidates
 Provide
2
multiple ECS Systems across the country
National footprint to all CBS enabled banks.

3. NACH System Overview
• Facilitates interbank, high volume, electronic transactions
which are repetitive and periodic in nature.
• NACH Credit: Distribution of subsidies, dividends, interest,
salary, pension etc.
• NACH Debit: Collection of payments pertaining to telephone,
electricity, water, loans, investments in mutual funds,
insurance premium etc.
• Participants: Banks, Financial Institutions, Corporate and
Government
3

4. NACH Process Flows

5. Mandate Initiation: Sponsor Bank
Customer Initiates Mandate
through Corporate
Sponsor Bank Initiated Mandate Flow
1
Verification &
approval of
mandates
Destination
Bank
7
Corporate
Corp. sends
2 mandate to
Sponsor
Bank
12
Updates corporate
with details
Returns Files 8
Send to NACH
Mandate status updated
in NACH
9
10
Mandate Status
Updated 11
Back-end
Digitization of
physical
mandates
5
Files Sent to
Destination
Bank
6
NPCI NACH Network
Returns file sent
to Sponsor Bank
3
Sponsor
Bank
4
5
Data & Image files
sent to NACH
UMRN
generated by
NACH System

6. Mandate Initiation: Destination Bank
Destination Bank Initiated Mandate Flow
Customer Initiates Mandate
through Destination Bank
1
Corporate
2
Corp. updates
database &
sends
8 confirmation
response to
sponsor bank.
Confirmation of
mandate status
sent to Destination
Bank 11
Destination
Bank
3
Updates
7 corporate
with
details
Mandate status
updated in NACH 10
Sponsor Bank updates
database & sends
confirmation
4
6
6
Verified
image/data
sent to NACH
NPCI NACH Network
9
Verification
& approval
of mandates
Back-end
Digitization of
physical
mandates
Sponsor
Bank
5
Verified files sent to
Sponsor Bank
UMRN
generated by
NACH System

7. Centrum Mandate Enabled ACH
Payments System

8. Product Vision
8

9. Overview of Features
End-to-end Solution
Image Based Mandate Management Module
ACH Transaction Management Module
Fully Compliant with NPCI Guidelines
Easy Administration
•
•
•
Common Console for user setup and security configuration
Configurable Product-based ACH transaction processing
Corporates and Corporate Users setup
Comprehensive
Mandate
Management
•
•
•
•
•
Initiation and acceptance of mandates
Compliant with multiple scanner types
Intelligent image analysis, auto repair & duplicate detection
Outward and inward mandate management
MIS & Analytics
Comprehensive
ACH Transactions
Management
•
•
•
•
Outward and inward ACH transaction management
Wide range of transaction types – ACH, APBS, ECS and EBT
Rich MIS & Analytics
ISO 8583 Compliant Interface to CBS for ACH transaction posting
Value Added
Services
9
•
•
•
•
•
•
Corporate Interface for Direct Mandate Upload
Net position monitoring facility for Corporates
Automated alerts and feedback for Corporate users

10. Product Roadmap
Version 2.0:
Product Feature Evolution
• Charges Module
10
Version 1.0:
• Mandate Management
– O/w & I/w processing
– Lifecycle Management
– Archival & Research
• Transactions Management
– O/W & I/W processing
– Archival & Research
• Corporate Access
– Status Reports
– Transaction upload
– Itemized reports
– Charges logic
– Invoicing
• End user alerts
– sms alerts
– email alerts
• Customized Process Flows