Salary, Pension & EMI Payment Rules To Change From August; Check Details
New Delhi: Bank customers will no longer have to wait for a working day to do important transactions such as pension, salary transfers and EMI payments as payments will take place 24X7 from August 1, according to a report.
RBI Governor Shaktikanta Das, during the credit policy review of June, had announced that customers would be able to avail the benefits of 24×7 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.
What is NACH?
NACH is a bulk payment system which is operated by the National Payments Corporation of India (NPCI). NACH facilitates one-to-many credit transfers such as payment of dividend, interest, salary and pension.
It also facilitates the collection of payments with regard to gas, electricity, water, telephone, periodic instalments towards loans, investments in mutual funds and insurance premiums.
The NACH has emerged as a prominent mode of direct benefit transfer (DBT) for a large number of beneficiaries. The Central Bank has said that this payment system helped transfer government subsidies during the present coronavirus disease (Covid-19) pandemic in a timely and transparent manner.