HSBC is First Bank Live on 'Game-changing' NACH System

            HSBC is First Bank Live on 'Game-changing' NACH System

  PR Newswire

  MUMBAI, May 23, 2013

MUMBAI, May 23, 2013 /PRNewswire/ --

HSBC is the first bank in India to complete live customer transactions on the
National Automated Clearing House (NACH) debit platform. Vodafone India, one
of India's leading telecommunications service providers and two asset
management companies, HSBC Asset Management Company and Reliance Capital Asset
Management (RCAM), are the first customers to use this new infrastructure.

India's economy has undergone rapid growth in recent years resulting in the
need for a more sophisticated payments infrastructure. The creation of this
new system, complemented by other innovations such as Interbank Mobile Payment
Service (IMPS), means that India now has the robust platforms it needs to
continue to grow. This is a prime example of the significant strides emerging
economies are making in the development of their financial infrastructure.

Commenting on HSBC's early adoption of the system, Mr. Navin Gupta, Head of
Payments and Cash Management, HSBC India said, "These developments enable
companies in India to maximise their operating efficiency and adopt liquidity
management structures that are in line with international practices - and that
many global organisations expect. The system allows global banks, like HSBC,
to help companies looking to do business in India to manage their cash
effectively and in line with a broader global cash management strategy. This
system marks a shift in India's cash management capabilities, as the country
now has a payments system that makes it profoundly easier for businesses to

India's NACH system, an initiative by the National Payments Corporation India
(NPCI), is a new payments system which incorporates best practice
functionality from existing systems around the world. With the NACH system in
place, which is a significant upgrade on legacy platforms, customers can
benefit from faster transaction settlement, wider coverage and superior
mandate management system, resulting in greater efficiency and wider branch
coverage across India - bringing a large area onto one, consistent and highly
advanced system.

"NACH implementation will future proof the system in India for bulk and
repetitive payments," said Shri A. P. Hota, MD & CEO, National Payments
Corporation of India.

"The NACH Debit is an effective way to collect funds from our consumers spread
across remote locations in India as compared to Electronic Clearing System
Debits - not only are mandates registered within 3-4 days as compared to 21-25
days, it also covers all IFSC enabled branches across India. The same day
transaction information also enables locking in of the funds at the current
day's NAV as compared to ECS debits where we receive information only after
3-4 days," says Mr. Sundeep Sikka, CEO of Reliance Capital Asset Management.

"The NACH system is an effective platform, especially in our effort to provide
"best-in-class" services to our investors. The NACH platform will help us
improve upon the processes and timeliness of SIP registrations as compared to
the current industry standards. The system also enables dividend payouts
across our investor base in a seamless and timely manner. Finally, the
platform will also provide us with a wider reach as compared to the systems
prevalent today," said Puneet Chaddha, Chief Executive Officer, HSBC Global
Asset Management, India.

HSBC's early adoption of this system reinforces our commitment to fulfilling
our clients' need for an efficient bulk electronic payments and collections
platform, and improving efficiencies to enable growth. HSBC is once again at
the forefront of cash management developments in one of the world's fastest
growing economies.

Notes to editors

About HSBC in India

The Hongkong and Shanghai Banking Corporation Limited in India offers a full
range of banking and financial services to about 1 million customers through
its 50 branches and 140 ATMs across 29 cities.

HSBC is one of India's leading financial services groups, with over 30,000
employees in its banking, investment banking and capital markets, asset
management, insurance broking, insurance, software development and global
resourcing operations in the country. It is a leading custodian in India.
Nearly 6% of India's exports and imports pass through HSBC India's banking
channels. The asset management business in India is one of the leading players
in the industry. The Bank is at the forefront in arranging deals for Indian
companies investing overseas and foreign investments into the country. With
its extensive reach across Asia, the Americas and Europe, HSBC has the
capacity to offer complete banking and financial solutions to India's
burgeoning economy. In 2008, it acquired a majority stake in IL&FS Investsmart
(now renamed HSBC InvestDirect) that has enabled it to offer retail brokerage
services to its customer across a wider geography. It has also formed a joint
venture life insurance company with Canara Bank and Oriental Bank of Commerce.

HSBC's network of branches is located at Ahmedabad, Bangalore, Chandigarh,
Chennai, Coimbatore, Gurgaon, Guwahati, Hyderabad, Indore, Jaipur, Jodhpur,
Kochi, Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur, Noida, New Delhi,
Nasik, Patna, Pune, Raipur, Surat, Trivandrum, Thane, Vadodara and

The Bank is the founding and a principal member of the HSBC Group which, with
an international network covering 6900 offices in 80 countries and territories
and assets of US$ 2,692bn at 31 December 2012, is one of the world's largest
banking and financial services organisations.

Primary Media Contact: Neha Hora, , 91-22-22685337

Contact: PRN