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Question

General Knowledge Question on Economics

Which of the following statements best describes the nature of the National Automated Clearing House (NACH) implemented by the National Payment Corporation of India (NPCI)?

A

It is a web-based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature

B

It is utilised to modify in real time individual transactions between bank accounts

C

It facilitates direct government disbursements to beneficiaries under various schemes

D

It is an RBI mobile app to facilitate international wire transfers and foreign remittances

Answer

It is a web-based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature

Explanation

Solution

The National Automated Clearing House (NACH) is a web-based platform used to manage high-volume, repetitive, and periodic interbank transactions, especially for purposes like recurring payments and direct debits.
Thus, the correct answer is Option (A).