Nach 3.0: The National Payments Corporation of India (NPCI) is going to launch the Nach 3.0 (National Automated Clearing House) system in the first week of July 2025. With the implementation of this new version, regular banking transactions like salary, pension, EMI, SIP will become faster and more secure than before.
According to the circular issued by NPCI, the new system will improve recurring payments across the country. Also, many important upgrade related to technology and cyber security will be brought.
What is Nach System?
The National Automated Clearing House (Nach) is a centralized clearing system. It allows banks to process regular transactions such as salary, government subsidy, loan installment, insurance premium and SIP. Crores of users depend on this system daily.
If you say in easy words, then companies, government institutions or any agency can send money to bank accounts of many people through Nach system or cut money from their accounts in an automatic manner. For example, every month your salary comes to your bank account. Your EMI, electricity bill, insurance premium etc. are automatically cut through Nach.
What is new in Nach 3.0?
NPCI has reported that the new version will be completely re-designed graphical interface (GUI) and better back-end. Some special reforms have been made in this:
- Credit transactions such as salary and subsidy processing will be faster.
- Debit transactions like EMI and SIP will be cleared earlier.
- There will be a new dashboard with real time monitoring for banks.
- Users will be able to create an account with themselves or reset passwords, admin will not be required.
- The process of complaints will be easier, the NPCI matrix can be updated directly from the banks.
Big steps for cyber security
NPCI has also taken measures to solidify the security system in Nach 3.0, so that the transactions are completely safe.
- Complete end-to-end encryption on both GUI and host-to-host (H2H) channels.
- Compulsory multi-factor authentication (MFA) for every user.
- Roll-based access control, so that the abuse of data can be prevented.
- PAGP Encrypted File Download Perform, Plain Text Download Download.
- Real time alert and better audit trails, so that any irregularity can be detected immediately.
NPCI says that all these features are to ensure confidentiality and operational safety.
What do industry experts say on the system?
Freo’s co-founder and CEO Kunal Varma believes that the new update will improve the payment system. He said, “Nach 3.0’s rollout will make recurring payments such as salary, EMI and SIP much faster and reliable. This will reduce the delay in processing and increase operational efficiency for both banks and consumers. It will strengthen the entire digital payment system.”
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