The Reserve Bank of India (RBI) has announced that the National Automated Clearing House (NACH) system will be available daily, including Sundays and holidays, starting August 1. RBI Governor Shaktikanta Das said so during the MPC’s announcement on central bank politics on June 4.
The central bank said everything from dividends, interest, wages, pensions, payments for electricity, gas, telephone, water, periodic loan payments, investments in mutual funds of placement, insurance premiums, etc., can take place even on public holidays.
This is an important step as the account user’s direct debit instructions are not processed on public holidays, bank holidays and Sundays until now. Salaries are not credited on these holidays either.
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Under the new rule, people will now be required to maintain an appropriate balance in their accounts on the day of the debit, even if it is a holiday or a Sunday, in order to avoid a financial penalty for a charge. low balance. Until now, even if you couldn’t maintain a proper balance on those days and credit your account the next day, you didn’t have to pay any financial penalties.
“NACH, a bulk payment system operated by NPCI, has become a popular and important digital mode of direct benefit transfer (DBT) to a large number of beneficiaries. This has helped transfer government grants during the current COVID-19 in a timely and transparent manner, ”the RBI statement said.
NACH is currently only available on days when the banks are operational. “In the interest of customer convenience, and to take advantage of the availability of RTGS every day of the year, it is proposed to make NACH available every day of the week throughout the year, effective August 1, 2021, “the statement read. added. Previously, the RBI had made electronic funds transfers such as NEFT and RTGS available around the clock as part of the government’s digitization campaign.
RBI Governor Das, in his MPC meeting announcements on Friday, said the repo rate would remain unchanged at 4%. The repo rate also remained unchanged at 3.5 percent. RBI has also maintained its “accommodating” stance due to the uncertainty amid the second wave of coronavirus.
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