Difference between NACH and ECS
Basis |
NACH |
|
---|---|---|
Scope |
A centralised system that enables bulk transactions for various types of payments. It is managed by the NPCI and applies to all banks and financial institutions across the country. |
A regional clearing system used for bulk transactions, but within a specific jurisdiction or circle. It is managed by the Reserve Bank of India (RBI) and is applicable only within the respective circle where it is implemented. |
Operating Model |
Web-based and computer-assisted systems and transaction takes less time as compared to ECS. |
ECS uses manual process and takes time for a settlement of transaction. |
Dispute Redressal |
NACH has a framework in place to deal with disputes. |
No dedicated dispute resolution services are available to ECS. |
Registration Timeline |
By the end of the day, NACH registration is finalized. |
It can take 25 to 30 days to complete the ECS registration process. |
Time for Settlements |
Day-to-day settlement of NACH payments. |
It can take up to four days for ECS payments to be processed. |
Red Tapism |
The application process for NACH requires only a small amount of paperwork. |
Many ECS applications are turned down because of excessive red tape and there is high probability of rejection. |