NPCI introduces new product codes in NACH Credit Cycle

          

NPCI NACH Team has informed to all NACH Member Banks on the need for new product codes in NACH Credit channel.

          At present, 1300+ Banks participate in NACH Credit Channel. The banks are a mix of foreign banks, public sector banks, private sector banks, small finance banks. Payment banks, cooperative banks, Regional Rural Banks, District Central Cooperative Banks, Urban Cooperative Banks, Local Area Bans etc.

          The vast reach of the NACH Credit channel with minimal processing cycle makes it attractive for Government Departments to route pay-outs through NACH Credit cycle.

          Central Government’s latest flagship scheme i.e PM Kisan SAmman Nidhi Scheme, choose to route the credits to farmers accounts through NACH Credit channel.

          The stupendous success of the transaction cycle is encouraging other departments to route their credit transactions through NACH Credit channel.

          To enhance the success rates of the NACH Credit transactions, NPCI intends to introduce new product codes in NACH.

          Reference is invited to NACH Circular )1 dated April 08, 2019 addressed to all NACH Member Banks. 

Product type in NACH comprises of 3 Digits to identify different transaction categories.

          As new transaction categories are expected to be added on an ongoing basis, NPCI has advised banks to build parameterised facility to create 3 digit product type in system so that the banks will be able to present as well as process inward transactions for any new products on an on going basis.

          To enable banks to process transactions with new product codes NPCI will inform 15 days in advance, before the first set of transactions under the new code will hit the NACH cycle.

          There will be no change in the file format, however there will be change in the file naming convention and product type or transaction code captured inside the file.

          The first lots of product type to be created by the Banks have been communicated by NPCI and banks are expected to ready to process files with the new product codes by April 30^th, 2019.

          The first set of 3 products are as under:

01)  Product type ‘PM-KISAN’

02) Product type “GEN”

03) Product type “SYM” i.e Pradhan Mantri Shram Yogi Maan-Dhan scheme

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Government proposes to launch mega pension yojana 'Pradhan Mantri Shram-Yogi Maandhan' for unorganised sector workers with monthly income upto rs. 15,000; 10 Crore Labourers and workers in the sector to be benefitted.

The Government proposes to launch a mega pension yojana namely 'Pradhan Mantri Shram-Yogi Maandhan' for the unorganised sector workers with monthly income upto Rs. 15,000. While presenting the Interim Budget 2019-20 in Parliament today, the Union Minister for Finance, Corporate Affairs, Railways and Coal, Shri Piyush Goyal said that half of India’s GDP comes from the sweat and toil of 42 crore workers in the unorganised sector working as street vendors, rickshaw pullers, construction workers, rag pickers, agricultural workers, beedi workers, handloom, leather and in numerous other similar occupations.

The Government must provide them comprehensive social security coverage for their old age.

Therefore, in addition to the health coverage provided under ‘Ayushman Bharat’ and life & disability coverage provided under ‘Pradhan Mantri Jeevan Jyoti Bima Yojana’ and ‘Pradhan Mantri Suraksha Bima Yojana’, our Government proposes to launch a mega pension yojana namely 'Pradhan Mantri Shram-Yogi Maandhan' for the unorganised sector workers with monthly income upto Rs. 15,000.

         

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Though there are multiple benefits of unique product codes, banks with few transactions will have to keep track of multiple files in a single day.

          However, the benefits are more than the drawbacks, this circular is welcome.

Image Courtesy: Equitas Small Finance Bank