New RBI Rules: Salary, pension and EMI payment rules to effectively change from August 1, Read all the details

RBI
RBI

You are no longer required to wait for a business day to complete critical transactions such as salary, pension, and EMI payments. The Reserve Bank of India amended the National Automated Clearing House’s rules (NACH). These modifications will take effect on August 1, 2021. That is, you will no longer have to wait for working days before receiving your salary or pension. These services are available seven days a week. NACH’s services are now available seven days a week. At the moment, facilities are available only during bank hours, Monday through Friday.

The regulations apply to directors of other banks, including the Chairman/Managing Director, any firm in which they are a partner or guarantor, and any company in which they have a significant interest or are a director or guarantor.

New RBI Rules : NACH Services to be Available 24×7 from 1 August l NACH New Rules

Utilize NACH facilities at any time.

Occasionally, the first day of the month falls on a weekend, forcing employees to wait until Monday to receive their paychecks. RBI Governor Shaktikanta Das announced during the June credit policy review that in order to further enhance customer convenience and to take advantage of 24×7 Real Time Gross Settlement (RTGS), NACH (currently available on working days in banks) would be implemented on all days of the week beginning August 1, 2021.

Salary, pension, and EMI payments are now made on weekends as well.

NACH is the National Payments Corporation of India’s bulk payment system (NPCI). Which enables the transfer of various types of credit, including dividends, interest, salary, and pension. Additionally, the facility of paying electricity bills, gas bills, telephone bills, water bills, loan EMIs, mutual fund investments, and insurance premiums is provided. In other words, you will no longer have to wait until Monday through Friday, i.e., weekdays, to take advantage of these services; you can now conduct transactions on weekends as well.

According to the RBI, NACH has grown in popularity and prominence as a digital mode of Direct Benefit Transfer (DBT) for beneficiaries, facilitating the timely and transparent transfer of government subsidies during the ongoing COVID-19 pandemic. Currently, NACH services are only available on business days, but beginning August 1, this facility will be available seven days a week.

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