The objective of the system is to facilitate centralised processing for repetitive and bulk payment instructions. Sponsor banks shall submit NECS data at a single centre viz. at Mumbai. NECS (Credit) shall facilitate multiple credits to beneficiaries’ accounts at core banking enabled destination bank branches spread across the country against a single debit of the account of a User with the Sponsor Bank which maintains settlement account in the books of RBI, Mumbai. NECS (Debit), when operationalised, shall facilitate multiple debits to destination account holders against single credit to User account.
The participants will permit the banks in their respective countries to maintain ACU dollar, ACU euro and ACU yen accounts with their correspondent banks in the other participating countries. All payments other than ineligible payments will be settled by the banks concerned through these accounts. The operations on these accounts shall be governed by the prevailing Exchange Control Regulations and such other directions, rules, regulations or guidelines as the participants may issue or specify from time to time.
The ACU was established at the initiative of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP). The Decision to establish the ACU was taken at the Fourth Ministerial Conference on Asian Economic Co-operation held in December 1970 at Kabul. The Draft Agreement Establishing the ACU was finalized at a meeting of senior officials of the Governments and central banks held at ESCAP, Bangkok, in December 1974 after five central banks (India, Iran, Nepal, Pakistan, and Sri Lanka) signed the Agreement.