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The above graph represents the total volume and value of NACH transactions in India, by month. Both, the volume and value of NACH transactions in India reached an all-time high in the month of October 2019. The National Automated Clearing House (NACH) handled over 360.6 million transactions worth over Rs 2,007.72 billion in India. The country recorded an appreciable 25.1% and 38.5% month-over-month growth in the volume and value of NACH transactions, respectively.
|Source||Reserve Bank of India (RBI)|
|Note||India fiscal year starts from April 01|
One must note that April 2019 was the first time when the number of NACH transactions crossed the 300 million mark (342.82 million to be specific), with a 16.4% M-o-M growth. The total value of NACH transactions stood at Rs 1,550.43 billion during the month.
Interestingly, March 2018 was the first time when NACH system handled over Rs 1,313.7 billion worth of transactions in a month – recorded a whopping 39.47% month-over-month growth in the value of the transactions.
What is the National Automated Clearing House (NACH)?
NPCI (National Payments Corporation of India) has implemented the “National Automated Clearing House” (NACH) for banks, financial institutions, corporates and government in India. NACH system is a web-based solution, aiming to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature.
According to NPCI, NACH system can be used for making bulk transactions towards the distribution of subsidies, dividends, interest, salary, pension, etc. as well as for bulk transactions towards the collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium, etc.
Digital Transactions In India: Additional Information
The internet revolution has resulted in exploded adoption of digital methods of transactions worldwide. The users of Credit & Debit cards, mobile and internet nowadays are far more aware and digitally empowered with making financial transactions. In the last few years, however, digital transactions have branched out into multiple types of financial transactions.
Started with the use of Credit and Debit cards at POS in large retail stores, digital transactions industry has come a long way. The introduction of mobile wallets and UPI have transformed the whole digital transaction industry in India. RTGS (Real Time Gross Settlement), NEFT (National Electronic Fund Transfer), CTS (Cheque Truncation System), IMPS (Immediate Payment Service), NACH (National Automated Clearing House), UPI (Unified Payments Interface) and PPI (Prepaid Payment Instruments) are the main type of financial transactions that fall under the Digital transaction category.
Digital transactions save time and money, resulting in a better bottom line. Customer experiences are also enhanced (think of the convenience of eSigning versus having to print a contract, sign it, and then return it by mail or fax). And digital transactions improve tracking capabilities, which helps reduce errors.
The exploded adoption of smartphones, mobile apps and mobile internet has helped Digital transaction industry to grow at an unprecedented rate. With more than 500 million smartphone users, India is one of the largest countries by the number of digital transactions that are recorded every month.
The above graph is a part of Dazeinfo GraphFarm – the most trusted source of hundreds of thousands of market graphs. Our team of researchers mines millions of data points every month to bring the most updated and validated set of data points representing the comprehensive view in a graphical format. From mobile to e-commerce, from Retail to healthcare, from startups to SMEs we have carefully designed thousands of graphs for those who value and understand the importance of data visualisation.