New Delhi17 minutes ago
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NACH is a massive payment system. This operation is done by National Payment Corporation of India. – Symbolic photo
- Direct Benefit Transfer ie DBT can be done on any day
- Electricity like telephone, gas, electricity can be stored on time.
The Reserve Bank of India (RBI) has given a big relief to the common man. RBI has decided to keep the National Automated Clearing House (NACH) system operational all day. This includes Sundays and all bank holidays. This new facility will be applicable from 1st August 2021. RBI Governor Shaktikanta said this while giving information about the decisions of the Monetary Policy Committee (MPC) meeting on Friday.
Your salary will be deposited in the account even on holiday
RBI Governor Shaktikanta Das said that after the introduction of this new facility, salary can be deposited in the bank account of employees even on Sundays or holidays. Apart from this, all types of payments made automatically from your account can also be done on Sundays or holidays. It also includes mutual fund SIP, monthly installment (EMI) of home-car or personal loan, payment of bills like telephone, gas and electricity. Till now the salary is not credited in the account on Sundays or holidays. Also, there are no automatic payments from the account. This is because most of the companies use NACH for salary and other forms of payment. This facility is not available on Sundays or Bank Holidays.
Keep enough balance in the bank to avoid penalty
If you have taken the facility of automatic payment of any kind of EMI or bill from your bank account, then from August 1 you will have to maintain sufficient balance in the account. Failure to do so may result in a penalty for failure to pay due to low balance. Under the current system, if there is not enough balance on Sunday and money is deposited on Monday, the installment or bill is paid on Monday. This also prevents payment failure and does not incur penalty on the customer. But after August this will not happen and there may be penalty for not having sufficient balance at the time of payment on Sundays or holidays.
What is NACH?
NACH is a massive payment system. This operation is done by the National Payment Corporation of India (NPCI). This system provides facility to transfer payments like dividend, interest, salary, pension to multiple accounts at the same time. Apart from this, it also provides the facility to make payments related to electricity, telephone, gas, water and collection of loans, mutual funds, insurance premiums. For example- money is automatically deducted from the customer’s account through NACH facility after giving consent to the Electronic Clearance Service (ECS) to the bank.
NACH has become quite popular for DBT
RBI Governor Shaktikanta Das said that NACH has emerged as a popular and prominent digital mode for Direct Benefit Transfer (DBT) to the beneficiaries at large. It is helping a lot in timely and transparent transfer of government subsidies during COVID-19.