National Automated Clearing House, introduced by National Payments Corporation of India, is a centralised clearing service that aims at providing interbank high volume, low value transactions that are repetitive and periodic in nature.
[1] According to the service's website, 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.
The service was started by Reserve Bank of India providing, both, debit and credit which can be used to pay utility bills.
Destination banks are allowed to do transaction, process mandates and update the Aadhaar mapper through the use of the system.