Bank customers will no longer have to wait for a working day to do important transactions such as pension, salary transfers and EMI payments etc. This is because the Reserve Bank of India (RBI) has changed the rules of the National Automated Clearing House (NACH) which will come into effect from August 1, 2021.
RBI Governor Shaktikanta Das, during the credit policy review of June, had announced that customers would be able to avail the benefits of 24x7 Real Time Gross Settlement (RTGS), NACH on all days of the week, with effect from August 1, 2021. This has been done to further enhance the convenience of bank customers in the country.
Customers will now be able to avail NACH services all seven days of the week. Currently, the NACH facilities are only available to customers on weekdays i.e. Monday to Friday.
According to the changes made to NACH, bank customers will not have to wait for a working day for their salary or pensions to be credited into their account. From August 1 onwards, customers will be able to perform these transactions any day of the week, including weekends.
This change in NACH services is expected to help customers during times when the first day of the month falls on a weekend. Normally, customers would have to wait for the next working day to get their salaries credited to their accounts, but with the changes to NACH services in effect, customers would be able to get their salary or pension credited to their account during the weekend.
What is NACH?
NACH is a bulk payment system that is managed by the National Payments Corporation of India (NPCI). The system is used for several types of credit transfers such as interest, dividend, pension and salary. Through NACH, users can also facilitate the payment of various bills, loan EMI, mutual investment and even insurance premium.
RBI has explained that NACH has emerged as a popular digital mode of Direct Benefit Transfer (DBT) for beneficiaries. It added that NACH had helped in the timely and transparent transfer of government subsidies to beneficiaries during the COVID-19 outbreak.
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