The rules for the payment of salaries, pensions and the EMI will change from August

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People will no longer have to wait a business day for their salary to be credited to their accounts. From August 1, all major banking transactions such as salary, pension and equal monthly deposit (EMI) payments will take place 24X7, according to a report from Livemint on Sunday.

Sometimes the first day of a month falls on a weekend and people have to wait until Monday to see the message on their phone that their salary has been credited to their accounts. And therefore, the above provision was introduced.

Reserve Bank of India (RBI) Governor Shaktikanta Das during the bimonthly monetary policy review last month said in a bid to further improve customer convenience and take advantage of 24-hour availability 24/7 Real Time Gross Settlement (RTGS), the National Automated Clearing House (NACH) will be available every day of the week starting August 1.

So far, NACH is only available on bank working days, typically Monday through Friday.

What is NACH?

NACH is a bulk payment system operated by the National Payments Corporation of India (NPCI). NACH facilitates one-to-many transfers such as the payment of dividends, interest, salaries and pensions, as the PTI news agency reported.

It also facilitates the collection of payments for gas, electricity, water, telephone, periodic loan payments, mutual fund investments and insurance premiums.

NACH has become an important direct benefit transfer (DBT) mode for a large number of beneficiaries. The Central Bank said this payment system is helping transfer government grants during the current coronavirus disease (Covid-19) pandemic in a timely and transparent manner.

(With PTI inputs)

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