BANKING MADE SIMPLE IN INDIA

     ANCHOR BANKS TO SIMPLIFY BANKING

Government of India has proposed the merger of 27 Public Sector Banks (PSB) into six.

Given below are the names of PSBs with the Anchor Bank (with Bank with which other Banks will get merged). 

1. State Bank of India (Anchor Bank)

State Bank of Hyderabad
State Bank of Patiala
State Bank of Travancore
State Bank of Bikaner & Jaipur
State Bank of Mysore

2. Punjab National Bank (Anchor Bank)

Oriental Bank of Commerce
Allahabad Bank
Corporation Bank
Indian Bank

3. Canara Bank (Anchor Bank)

Syndicate Bank
Indian Overseas Bank
UCO Bank

4. Union Bank of India (Anchor Bank)

IDBI Bank Ltd
Central Bank of India
Dena Bank

5. Bank of India (Anchor Bank)

Andhra Bank
Bank of Maharashtra
Vijaya Bank

6. Bank of Baroda (Anchor Bank)

United Bank of India
Punjab & Sind Bank
Bhartiya Mahila Bank

Under direction of RBI that from 1st April 2016 the clearing of cheques would be done on the same day in house where cheque is deposited i.e. with any Bank whether Nationalised & co - operative etc. and while screening if there is insufficiency of fund the bounced chq cannot be represented again & payee if need be will have to file legal complaint under section 138 System will change
take care of cheques issued.

1- ECS will be replaced with NACH from 01/04/2016.
2- Kindly ensure that all ECS payment to be made through till 31/03/2016.
3- NACH stands for National Automated Clearing House.

About NACH

National Payments Corporation of India (NPCI) has implemented “National Automated Clearing House (NACH)” for Banks, Financial Institutions, Corporates and Government a web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. NACH System can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.
National Automated Clearing House (NACH) is a centralised system, launched with an aim to consolidate multiple ECS systems running across the country and provides a framework for the harmonization of standard & practices and removes local barriers/inhibitors. NACH system will provide a national footprint and is expected to cover the entire core banking enabled bank branches spread across the geography of the country irrespective of the location of the bank branch.

With the implementation of NACH system, NPCI intends to provide a single set of rules (operating and business), open standards and best industry practices for electronic transactions which are common across all the Participants, Service Providers and Users etc. NACH system also supports Financial Inclusion measures initiated by Government, Government Agencies and Banks by providing support to Aadhaar based transactions.
The NACH system facilitates the member banks to design their own products and also addresses specific needs of the banks & corporates including a refined Mandate Management System (MMS) and an online Dispute Management System (DMS) coupled with strong information exchange and customised MIS capabilities.

The NACH system provides a robust, secure and scalable platform to the participants with both transaction and file based transaction processing capabilities. It has best in class security features, cost efficiency & payment performance (STP) coupled with multi-level data validation facility accessible to all participants across the country.

NACH’s Aadhaar Payment Bridge (APB) System, developed by NPCI has been helping the Government and Government Agencies in making the Direct Benefit Transfer scheme a success. APB System has been successfully channelizing the Government subsidies and benefits to the intended beneficiaries using the Aadhaar numbers. The APB System links the Government Departments and their sponsor banks on one side and beneficiary banks and beneficiary on the other hand.