1 min read.Updated: 26 Jul 2021, 08:19 AM IST Edited By Sangeeta Ojha
RBI has changed the rules for NACH with effect from next month, which will enable the processing of payments such as salaries and pension even on weekends
Sometimes, the first day of the month falls on the weekend, because of which people have to wait till Monday, for their salary to be credited. But, from next month (1 August), people you will not have to wait for a working day to see the most awaited message, 'Salary of XXXX has been credited into your account XXX-XXXXXX-XX. The available balance is XXXX'.
All important banking transactions like salary, pension and EMI payments will happen 24X7 with effect from August 1, 2021. During the credit policy review of June, RBI Governor Shaktikanta Das had announced that in order to further enhance the convenience of customers, the National Automated Clearing House (NACH) will be available on all days of the week. The facility is currently available only when banks are open, usually between Monday to Friday.
“In order to further enhance customer convenience, and to leverage the 24x7 availability of real-time gross settlement (RTGS), NACH which is currently available on bank working days, is proposed to be made available on all days of the week effective from August 1, 2021," RBI Governor Shaktikanta Das had said while announcing the bi-monthly monetary policy review.
What is NACH?
The National Automated Clearing House (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.
RBI said that NACH has emerged as a popular and prominent digital mode of Direct Benefit Transfer (DBT) for beneficiaries, which helps in timely and transparent transfer of government subsidies during the prevailing COVID-19 pandemic. Currently, NACH services are available only on days when banks are working, but from August 1, this facility will be available on all 7 days.