Bank customers willno longer have to wait for a working day to do important transactions such aspension, salary transfers and EMI payments etc. This is because the ReserveBank of India (RBI) has changed the rules of the National Automated ClearingHouse (NACH) which will come into effect from August 1, 2021.
Reserve Bank ofIndia’s Governor, Mr Shaktikanta Das, announced in the bi-monthly policy reviewthat the National Automated Clearing House (NACH) will now be available on allseven days to make transactions. It is now convenient for customers to leveragereal-time gross settlement services (RTGS) around the clock.
Currently, NACH isonly available from Monday to Friday, making it inconvenient for bank customerswhen the first day of the month falls on a weekend.
This change in NACHservices is expected to help customers during times when the first day of themonth falls on a weekend. Normally, customers would have to wait for the nextworking day to get their salaries credited to their accounts, but with the changesto NACH services in effect, customers would be able to get their salary orpension credited to their account during the weekend.
NACH is, basically, abulk payment system that is managed by the National Payments Corporation ofIndia (NPCI). The system is used for several types of credit transfers such asinterest, dividend, pension and salary. Through NACH, users can also facilitatethe payment of various bills, loan EMI, mutual investment and even insurancepremium.
RBI has explainedthat NACH has emerged as a popular digital mode of Direct Benefit Transfer(DBT) for beneficiaries. It added that NACH had helped in the timely andtransparent transfer of government subsidies to beneficiaries during theCOVID-19 outbreak.