The Reserve Bank of India (RBI) on Friday, June 4, said the National Automated Clearing House (NACH) will be operational on all days, including weekends. This will be effective from August 1, 2021.
The central bank said, 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.”
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NACH is a centralised system, launched with an aim to consolidate multiple ECS systems running across the country and provides a framework for the harmonisation of standards and practices, and removes local barriers/inhibitors. NACH system will provide a national footprint and is expected to cover the entire core banking-enabled bank branches spread across the geography of the country irrespective of the location of the bank branch.
NACH, a bulk payment system operated by the NPCI, facilitates one-to-many credit transfers like payment of dividend, interest, salary, pension, etc. It also facilitates the collection of payments pertaining to electricity, gas, telephone, water, periodic installments towards loans, investments in mutual funds, and insurance premiums.
The relevant instructions/circulars for all these measures will be issued separately,” said Shaktikanta Das, Governor, Reserve Bank of India.
RBI further mentioned that NACH has emerged as a popular and prominent mode of direct benefit transfer (DBT) to a large number of beneficiaries. This has helped the transfer of government subsidies during the present COVID-19 in a timely and transparent manner.