Salary, pension and EMI payment rules to change from August
People will no longer have to wait for a working day for their salary to be credited into their accounts. From August 1, all important banking transactions such as salary, pension and Equated Monthly Installment (EMI) payments will take place 24X7, according to a report by Livemint on Sunday.
At times, the first day of a month falls on a weekend and people have to wait for Monday to see the message on their phones that their salary has been credited into their accounts. And hence, the above provision was introduced.
Reserve Bank of India (RBI) governor Shaktikanta Das, during the bi-monthly monetary policy review last month, said with a view to further enhance customer convenience and to leverage the 24x7 availability of real-time gross settlement (RTGS), the National Automated Clearing House (NACH) will be available on all days of the week from August 1.
Till now, NACH is only available on bank working days, which is usually from Monday to Friday.
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, as reported by news agency PTI.
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.
(With PTI inputs)