The NFO collecting bankers accept NFO applications. After the NFO, they provide a'collections confirmation certificate'. The bank's collection figures are reconciled with the R&T agent's records before allotting units to investors.
National Automated Clearing House (NACH) is a centralised clearing system launched by the National Payments Corporation of India (NPCI).
NACH aims to replace and consolidate multiple existing Electronic Clearing Service (ECS) systems across India and create a faster and more efficient clearing platform.
NACH is useful for corporate and financial institutions that make payments in bulk like dividend distributions, salaries, interests, pensions, etc.
Cheque truncation means stopping the flow of the physical cheques issued by a drawer to the drawee branch. Instead of the physical instrument, an electronic image of the cheque is sent to the drawee bank for payment.
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