NACH, ECS & E-Mandate - Hindi - YouTube

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Namaskar, my name is Mukul and you are welcome to the Asset Yogi

Friends, if you want to send money to someone

Then it became very easy on today's date.

We have many online mediums. There's NEFT, RTGS, IMPS, or UPI

You can send money to anyone online through them

There are many apps in today's date

There's Google Pay, Paytm, Bhim App. You can also send money to someone through these.

But this is generally a one-time payment.

If you want to send the amount to someone regularly

For example, if you want to pay your EMI

Or if you invest some money in mutual funds every month.

We call it a Systematic Investment Plan. Your SIP payment is also regular

Or if you want to pay an insurance premium then it is also a regular payment

Children's school fees, there are many bills payments

Electricity, water, phone bills

If you have some fixed amount

That should be gone every month

So for these payments, what methods do we have?

There's a good old method that we have

We can give post-dated cheques to someone.

But we are living in the digital age in today's world

Then we have three main methods through which we can make payments online

And it takes quite a little time.

So in this video, we will discuss these three methods

And which method is right for you, we will talk about this

So keep watching this video.

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So if you want to make regular online payments to someone

If you have some fixed amount

So there is a very easy method for this

There's an option in your bank

If you use online banking.

So there's an option. Let's say you want to pay 10000 Rs rent every month

Then you will get an option of recurring payment there.

Or repeat this payment monthly.

You can select that

And you can add that payment every month

We call it E-Mandate.

So you pay your children's fee which is a fixed amount generally

You only need the account number of the school

Similarly, you can also do your bill payments

So there is one more option for the bill payments

You can add any biller as a biller to your online account.

Like Airtel, BSES,

If you want to make an electricity payment

Then you can add the account of BSES

In this way, many different electricity companies are there all over India

You can add them. You can add broadband companies.

You can also pay your utility bills online. This is called e-mandate

So, doing this online is very easy. It can be done immediately.

Now it comes to such payments where

You don't know the account number

For example, if you want to make an EMI payment.

You want to give money to mutual funds company, you invest in SIP

You want to pay the insurance premium

So generally two methods are used in this case

The first is an Electronic Clearing Service, which is also called ECS in the short form

And the second is the updated version of it

Which is called NACH, National Automated Clearing House

Now, ECS is an old system that is in use today

Now I will tell you some drawbacks of ECS

Its benefits are you had to give post-dated cheques earlier

Physical process was involved. So by ECS, the time was cut short and decreased

But in ECS also when you give mandate in your bank account

So it takes 30 days to approve the whole process

And when the presentation and settlement is done

When they present in your bank account

For example, whatever bank you have taken a loan from

It will present in your bank account

And it takes 3 to 4 days in process till settlement

Now this ECS system is local,

It is also regional and national also

So the national ECS may take some more time.

The Reserve Bank of India controls it

But the biggest drawback in this is it takes more time.

And assume if you want to change the bank account.

If you want to withdraw money from another account

So in that also, the whole process is done again

And it takes 30 to 40 days.

So it is now updated. Now this NACH system has come

Many banks have already adopted it.

So if you want to shift and if you already got an ECS from your account.

And some amount is debited from your account.

You can transfer your account under the NACH system.

So what is the benefit of the NACH system?

The first thing is that its process is very easy. It gets done in 10 days.

If I talk about physical. And on today's date, the e-mandate has come.

We call it E-NACH. And it gets done within 48 hours

The complete process is digital in this. It can be linked through Pan or Aadhar.

And your NACH mandate starts within 48 hours

This is a national system that is controlled by the National Payment Corporation of India.

And another big benefit of NACH is

The whole cycle gets done on the same day.

The settlement and presentation are done on the same day.

The mandate goes from the sponsored bank to NPCI

And it goes from NPCI to the destination bank.

And the settlement from the destination bank to the sponsored bank

The complete cycle gets completed on the same day.

So NACH system in today's date is very good

Assume you take a new loan or you start a new SIP

Then I would recommend that you go straight to the NACH system.

ECS will take very much time. And if there's already an ECS mandate on any EMI

SIP or insurance premium.

Then you can also transfer that to any NACH mandate.

So that's all in this video. If you find the information in this video helpful

Then like and share the video.

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So let's meet in the next informative video.

Till then keep learning, keep earning

And be happy as always.