Module: General Practice
Q69: Which of the following best describes the primary operational difference between the legacy Electronic Clearing Service (ECS) and the modern National Automated Clearing House (NACH)?
✅ Correct Answer: C
Concept: NACH vs.
ECS (Evolution). Structure: Governance: ECS was RBI-driven (Legacy). NACH is NPCI-driven (Modern). Architecture: ECS had regional centers (local clearing). NACH is a centralized web-based system covering the entire country (removing geographical barriers). Key Advantage: NACH integrates a Dispute Management System (DMS) and Mandate Management System (MMS), which ECS lacked.
This reduces turnaround time and friction in bulk processing.
ECS (Evolution). Structure: Governance: ECS was RBI-driven (Legacy). NACH is NPCI-driven (Modern). Architecture: ECS had regional centers (local clearing). NACH is a centralized web-based system covering the entire country (removing geographical barriers). Key Advantage: NACH integrates a Dispute Management System (DMS) and Mandate Management System (MMS), which ECS lacked.
This reduces turnaround time and friction in bulk processing.