NewDelhi: The Reserve Bank of India (RBI) has introduced new rules for salary, pension, and EMI payments applicable from August 1. RBI has amended the rules of the National Automated Clearing House (NACH). Under this new rule, you will not have to wait for weekdays for your salary or pension to be credited to your account as previously banks didn’t operate on weekends. Here’s all you need to know about the new rule change:
What are the new RBI rules?
In June, during the credit policy review, RBI Governor Shaktikanta Das had announced that customers can 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 means that customers can use bank for salary, pension, and EMI even on Saturday and Sunday. This has been done to enhance the convenience of bank customers in the country.
Earlier, the Central bank also changed rules for ATM withdrawals. It had raised the interchange fee for financial transactions in June to help banks meet the cost of ATM deployment and maintenance. The new rates were increased from Rs 15 to Rs 17.
What is NACH, how does it work?
For the unversed, NACH is a bulk payment system that is operated by the National Payments Corporation of India (NPCI). it facilitates various types of credit transfers such as dividend, interest, salary, and pension. It also provides the facility of the payment of electricity bill, gas, telephone, water, EMI loan, mutual fund investment and insurance premium payment.
How will the new RBI impact you?
NACH has emerged as a popular and prominent digital mode of Direct Benefit Transfer (DBT) for beneficiaries. It helps in the timely and transparent transfer of government subsidies during the current COVID-19 pandemic. Its facilities will now be available on weekends as well. Therefore, bank customers will be able to use banking for salary, pension, and EMI related transactions on weekends.
Bureau Report
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