The settlement for NACH Credit (156 character file format) takes place in the current account of the participating banks which maintained with Deposit Accounts Department (DAD), RBI, Mumbai. The settlement for NACH Credit (306 character file format) takes
place in the RTGS account of the participating banks maintained with Deposit Accounts Department (DAD), RBI, Mumbai.
For the purpose of participation, all the transaction files pertaining to sub-member bank will be uploaded/received directly by the sub-member bank itself through the NACH application. However, the settlement of the transactions will take place in the
settlement account of its sponsor bank.
Sub-member banks directly upload/receive the NACH Credit transaction files through the NACH application. However, the settlement of the transactions will take place in the settlement account of its sponsor bank.
For participation in NACH Credit, the sub-member bank needs to get connected to NPCI for accessing the NACH application. NPCI allows the access of NACH application to the participating banks either through NPCINet or Internet. Once the connectivity is
established, sub-member bank can directly upload/receive the NACH Credit transaction files.
The role of Sponsor Bank in NACH Credit for its sub-member banks is limited to the settlement of the NACH Credit transactions. The settlement of NACH Credit transactions pertaining to the sub-member bank takes place in the settlement account of its sponsor
bank. However, the sub-member banks directly upload/receive the NACH Credit transaction files through the NACH application.