The Reserve Bank of India (RBI) on Friday said National Automated Clearing House (NACH) will be available on all days of the week, effective August 1, 2021. “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,” the central bank said in a statement.
NACH, a bulk payment system operated by the NPCI, facilitates one-to-many credit transfers such as payment of dividend, interest, salary, pension, etc. It also facilitates collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds and insurance premium.
NACH has emerged as a popular and prominent mode of direct benefit transfer (DBT) to a large number of beneficiaries. This has helped transfer of government subsidies during the present COVID-19 in a timely and transparent manner, RBI further mentioned.
“The relevant instructions/circulars for all these measures will be issued separately,” said Shaktikanta Das, Reserve Bank of India.
“This move will pave the way for a greater customer convenience and will leverage the 24×7 RTGS facility which was recently made available by the RBI. The flagship program of the Union government, the direct benefit transfer (DBT), will get a booster dose as the NACH facility starts operating even on the weekends. The availability of NACH on all the days of the week will ensure a prompt transfer of various government subsidies. People under stress due to the pandemic can now receive timely payment under various schemes on time,” said Nitin Mathur, chief excutive officer, Tavaga Advisory Services.
“Undoubtedly, NACH is an easier way for merchants and buyers to handle recurring payments like insurance premium, SIP, EMI, school fee, utility bills etc. Making it available for all days of the week is a welcome decision and is in the best interest of the customer. However, it will be interesting to see that whether bank will allow the entire payment or restrict it to a limited amount during the non-working days,” said Zafar Imam, chief executive officer of Finshell.
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