Quick Customer Service tips on transaction processing on National Automated Clearing House (NACH) System

The payment channel adopted by Government of India, to move DBTL (Direct Benefit Transfer-LPG Subsidy) amounts is the NPCI’s NACH system.

NACH System in India is the latest addition to India’s retail ePayment products. NACH has been rolled out for commercial usage in mid 2012. The first batch of DBT transactions were processed 5 months back.

The major boost to NACH is the Government’s decision to roll out DBTL from 01 June 2013. As the transaction volumes under DBTL are huge, the member banks had no choice but to upgrade their infrastructure.

In the final phase of DBTL rollout it is expected that each processing cycle will have a minimum of 10 lac transactions.

Hence, the Banks have to ready to quickly scale up their IT infrastructure as well as customer service desks. Already, the destination banks customer service cells, are receiving queries associated with DBTL.  This is a good sign; as such queries will assist the respective banks to fine-tune their delivery channels.

NPCI vide it’s circular dt.31 May 2013 has advised the NACH member banks on a couple of aspects to minimize customer grievances.

The top 3 points are:-

01)   Transaction Narration in Customer Account Statement: On successful transaction processing Destination banks needs to print the value in User Name (Narration text) + User Credit Reference (sponsor bank transaction ref. no.) into the Account statement / Pass book for Beneficiary customers.


02)   Return and Response Files: The destination banks are required to provide the status of all the inward files/transactions received at their end. The status of the transactions not received in the response file cannot be treated as a “Deemed Acceptance/Success” as there is no such status called “Deemed Acceptance/Success”.

03)   System Processing Capacity: Member banks are advised to put in place necessary infrastructure having adequate capacity to process transactions in the range of 5-10 lakh or any other number in tune with the customer base and Aadhaar Numbers’ seeded in a window of 2-3 hours.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s