NPCI Launches National Automated Clearing House (NACH) 3.0 for Faster Salaries, EMIs & SIPs with Enhanced Security.
Banking & Finance
On 23 June 2025, the National Payments Corporation of India (NPCI) announced the launch of NACH 3.0—an upgraded version of its bulk payment platform. This will enhance the speed, reliability, and security of recurring payments like salaries, pensions, EMIs, SIPs, school fees, and subscriptions across India.
- NACH is a centralised system by NPCI that handles high-volume recurring payments such as salaries, pensions, Equated Monthly Instalments (EMIs), and Systematic Investment Plans (SIPs). NACH 3.0 is its upgraded version designed to eliminate delays, especially during peak hours.
- NPCI is an umbrella organisation set up by the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) to operate retail payment systems like UPI, IMPS, RuPay, and NACH. It plays a key role in India’s digital payments ecosystem.
- The upgraded system includes a modern Graphical User Interface (GUI) for easy use, real-time dashboards for tracking payment files, and instant notifications for mandate rejections. Banks can manage password resets and complaints without manual dependencies.
Main Point :- (i) NACH 3.0 introduces Pretty Good Privacy (PGP) encryption, Multi-Factor Authentication (MFA), and role-based access control. It also blocks plain-text downloads and logs all user activity, significantly improving data privacy and fraud prevention.
(ii) Banks and Non-Banking Financial Companies (NBFCs) can now process recurring payments more efficiently, with lower errors, faster reconciliation, and self-managed tools for dispute resolution. Delays in EMI/SIP collections are also reduced.
(iii) Consumers will benefit from timely credit of salaries and pensions, and automatic debits of EMIs and SIPs without penalty charges. It also ensures better transparency, fewer failures, and stronger protection of financial data.
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