Tag Archives: NPCI

NACH – Exclusive Session for Punjab Government Transactions


NPCI run National Automated Clearing House ePayment system is running special sessions from 8.00am to 11.00am every day from April 03, 2014.

During this special session, transactions pertaining to Punjab Government will flow into the NACH system.

The return transactions pertaining to this special session have to be submitted on the same day without any time-lag.

The special session is being conducted with Reserve Bank of India approval.

So Punjab Government beneficiaries can except credits in their accounts in the first half of the day.


SSHH – Top Secret – NPCI launches its fifth service on NFS

The full form of NFS is National Financial Switch which is currently operated by National Payments Corporation of India.

The primary site is located at Mumbai and DR site at Chennai.

In April 2014, NPCI-NFS launched its fifth service. The service has been christened as ‘Card to Card Transfer’.

Two innovative banks in the Indian ePayment arena i.e Andhra Bank  and Union Bank of India have agreed to run the pilot process.

As this is pilot run, details are still not available on the respective banks website.  In common language, Card to Card Transfer means transfer of electronic cash from one ATM Card to another ATM Card, without the need to visit a physical bank branch.

UCO Bank has gone live on IMPS using Account No and IFS Code

One of India’s oldest commercial Bank i.e UCO Bank has gone live on IMPS-Account Number/IFS Code sub product. The commercial launch was announced on 19th December, 2013.

Uco Bank, was formerly known by a long name i.e ‘United Commercial Bank’.

UCO bank currently has 2685 branches with Zonal Offices in 45 centres and 10 circle Offices and over 1580 ATMs, spread all over the country. As the Bank branches are completely on CBS, all the branches of the Bank are having RTGS/ NEFT facilities.

To reduce the time for processing TDS job, the bank has invited  sealed tenders from experienced bidders having proven capabilities for providing Web Based TDS Software

Scope of work in brief: In compliance of the Income Tax Act and Rules, the Bank Deducts Tax at Source from Depositors, Vendors and Employees. Such Deduction happens at different Levels in the 4-tier Organizational structure like Head Office, Circle offices, Regional offices and Branches. The Tax so deducted has to be remitted to Government through branches or via a Nodal Branch through Internet. Different Tax Rates, different threshold limits, etc would have to be considered while making such TDS. After remittance of Tax so deducted, at the end of each quarter, for each branch an Electronic Return to be generated in accordance with the Scheme given by Income Tax Department and be submitted to the Income Tax Department thorough the TIN network.

New Response Code in Aadhaar Based Payment (ABP) response file

response_Fotor            NPCI has mandated all banks to update the response code in the ABP return session. Under ABP Process,  the complete set of data has to be sent back to NPCI, with appropriate response code.

The Response Codes are of utmost importance for the Government Departments to know the status of individual transactions and also to reply to any query sought by the beneficiaries.

The response codes are

0             Transaction Returned by destination bank

1              Transaction accepted

2             Transaction rejected by NACH system

3             Transaction on extension

4             Transaction pending processing

6     Unwound

It was expected that all destination banks would have STP facility for processing ABP files and hence there would be no technical issues in updating the response codes in the reverse file.

However, it was noticed that some transactions did not have the response code, and NPCI-ACH by default used to update the response code as ‘1 transaction accepted’. As this was showing a false picture to the Sponsor Banks and Government Departments, a new code

7     Transaction is Deemed Accepted

However, in the long run the Response Code 7 should be withdrawn, and it would be beneficial to all the ABP Participants to update the reverse ABP file with the correct response files.

This would increase the confidential levels of the beneficiaries in the ePayments sector.