The Reserve Bank of India (RBI) on Friday decided that the National Automated Clearing House (NACH) payment system will be made available on all days of the week from August 1, 2021.
NACH is currently available only on the days when banks are functional.
"In the interest of customer convenience, and to take advantage of the availability of RTGS on all days of the year, it is proposed to make available NACH on all days of the week throughout the year, effective August 1, 2021," RBI Governor Shaktikanta Das said in his monetary policy statement.
National Payments Corporation of India (NPCI) has implemented “National Automated Clearing House (NACH)” for Banks, Financial Institutions, Corporates and Government a web-based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature.
NACH System can be used for making bulk transactions towards the distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards the collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.
Meanwhile, The RBI's Monetary Policy Committee (MPC) decided to maintain the status quo on key policy rates. The MPC voted unanimously to leave the repo rate unchanged at 4 percent. The MSF rate and bank rates also remain unchanged at 4.25 percent.
First Published: IST