Bulk payment system NACH to be available on all days from August 1: All you need to know

Bulk payment system NACH to be available on all days from August 1: All you need to know

The Reserve Bank of India (RBI) has announced that the National Automated Clearing House (NACH), a bulk payment system operated by the National Payments Corporation of India, will be available on all days from August 1, 2021.

“In order to further enhance customer convenience, and to leverage the 24×7 availability of 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,” said RBI Governor Shaktikanta Das.

ALL YOU NEED TO KNOW

The NACH payment system facilitates one-to-many credit transfers such as salary, pension, interest, dividend. It is also used for the collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds, insurance premium, etc.

The RBI in a detailed statement noted that NACH has become a popular and prominent digital mode of direct benefit transfer (DBT) to many beneficiaries. The central bank noted that NACH has helped in the transfer of government subsidies during the ongoing Covid-19 pandemic in a timely and transparent manner.

“NACH is currently available only on the days when banks are functional. In the interest of customer convenience, and to take advantage of the availability of RTGS on all days of the year, it is proposed to make available NACH on all days of the week throughout the year, effective August 1, 2021,” the RBI said in a statement.

Meanwhile, the Reserve Bank of India on Friday left key interest rates unchanged and maintained an accommodative stance. The repo rate has been kept unchanged at 4 per cent and the reverse repo rate remains 3.35 per cent.

This is the sixth time in a row when the RBI’s Monetary Policy Committee (MPC) has decided to maintain status quo. In addition, the RBI also announced additional liquidity measures to support affected businesses and citizens during the second Covid-19 wave.

Source:-indiatoday

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