The National Payments Corporation of India (NPCI) is set to launch NACH 3.0 (National Automated Clearing House) in the first week of July 2025.
With this new version, common banking transactions like salary, pension, EMI, and SIP will become quicker and more secure.
According to an official circular from NPCI, the updated system will improve recurring payments across the country.
It will also include several important technology and cyber security upgrades.
What is the NACH System?
The National Automated Clearing House (NACH) is a centralized system used by banks to handle routine transactions like salary, government subsidies, loan EMIs, insurance premiums, and SIPs. Millions of people rely on this system every day.
Simply put, NACH allows companies, government departments, or any organization to either transfer money to many people’s bank accounts or automatically deduct payments from them.
For example, your monthly salary is credited through NACH. Similarly, your EMI, insurance, and electricity bills may be automatically deducted using this system.
What’s New in NACH 3.0?
NPCI says the new version will come with a completely redesigned interface (GUI) and an improved backend system. Key updates include:
Faster credit transactions like salary and government subsidies
Quicker debit transactions such as EMIs and SIPs
A new real-time monitoring dashboard for banks
Users can create accounts or reset passwords themselves without admin help
Easier complaint handling – banks can directly update NPCI metrics
Major Cyber Security Enhancements
To ensure safer transactions, NPCI has also made important changes in security for NACH 3.0:
End-to-end encryption on both user interface and system-to-system channels
Multi-factor authentication (MFA) for every user
Role-based access control to prevent data misuse
Only PGP-encrypted files can be downloaded; plain text downloads are blocked
Instant alerts and better audit trails to detect any unusual activity
According to NPCI, these updates will help protect user data and ensure safe operations.
What Do Industry Experts Say?
Kunal Varma, Co-founder and CEO of Freo, said the update will improve the payment system.
He added, “The launch of NACH 3.0 will make recurring payments like salary, EMIs, and SIPs faster and more dependable.
It will reduce processing delays and improve efficiency for both banks and customers. Overall, this upgrade will strengthen India’s digital payment system.”
