There are times when the weekend falls on the first day of the month due to which the employees wait till Monday for their salaries to get credited. However, with effect from 1st August 2021 all the banking transactions such as salary, pension, and EMI payments will happen 24×7.
The Governor of RBI during the bi-monthly monetary policy review said ‘ In order to further enhance customer convenience and to leverage the 24×7 availability of real-time gross settlement (RTGS), The National Automated Clearing House (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.
What is NACH?
The National Automated Clearing House (NACH) is operated by the National Payments Corporation of India and is a bulk payment system that facilitates one-to-many credit transfers such as payment of dividend, interest, salary, and pension. Moreover, it is responsible for facilitating the collection of payments pertaining to telephone, electricity, gas water, periodic installments towards loans, investments in mutual funds, and insurance premiums.