1 min read.Updated: 15 Aug 2021, 07:49 AM ISTLivemint
Bank customers must keep in mind that they need to keep a minimum balance in their bank account at all times when making payment through cheque
Bank customers who have a habit of using cheques for making various payments must ensure that they have sufficient balance in their account at all times 24x7. The Reserve Bank of India (RBI) came out with a new set of guidelines regarding changes to the banking rules from this month. With the new rule change, cheques can be cleared on a Sunday or a holiday too. The customers must keep in mind that they need to keep a minimum balance in their bank account at all times. If they fail to do so, the cheque may bounce and they will have to pay a fine or penalty.
During the bi-monthly monetary policy review in June, RBI Governor Shaktikanta Das had announced that in order to further enhance the convenience of customers, the NACH will be available on all days of the week. This facility has been made available on all days of the week, effective August 1, 2021.
How will 24/7 bulk clearing facility benefit cheque users?
This change has been implemented in all national and private banks. With that said, the new change will benefit the cheque user more as issued cheques can be cleared even on a holiday.
What is NACH?
NACH is a bulk payment system operated by the National Payments Corporation of India (NPCI) that facilitates one-to-many credit transfers such as payment of dividend, interest, salary and pension.It also facilitates the collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds and insurance premiums.