The National Payments Corporation of India (NPCI) on May 15, 2026, issued circular regarding the introduction of ACH Debit settlement on realization under NACH.
The circular introduces a revised settlement mechanism for ACH Debit transactions under NACH by shifting to a “settlement on realization” basis to reduce settlement risk and improve liquidity management.
Under the new framework, settlement at the presentation stage is discontinued, and financial settlement will occur only after confirmation or deemed acceptance by the destination bank within prescribed timelines. Transactions that receive negative confirmation will not be settled, and such details will be shared with presenting banks for further action, including possible re-presentation.
Presentation session reports will now serve only for reference and reconciliation, with greater reliance on acknowledgement-based controls and file-level validations. Member banks are required to strengthen reconciliation processes while continuing to use existing file formats.
Overall, the change aims to enhance risk mitigation, improve reconciliation accuracy, and ensure better liquidity predictability across the NACH ecosystem. Member banks must update their systems, processes, and controls to comply with the revised framework before the effective date.
[Circular No. NPCI/2026-27/NACH/002]
