Salary, pension, interest, dividend and other payments and investments through National Automated Clearing House (NACH), a bulk payment system operated by NPCI, can be done on all days of the week from August 1, 2021
Salary, pension, interest, dividend and other payments and investments through National Automated Clearing House (NACH), a bulk payment system operated by NPCI, can be done on all days of the week from August 1, 2021, according to RBI’s “Statement on Developmental and Regulatory Policies” released today (June 4, 2021).
NACH facilitates one-to-many credit transfers, such as payment of dividend, interest, salary, pension, as also collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds, insurance premium.
RBI said NACH has emerged as a popular and prominent digital mode of direct benefit transfer (DBT) to a large number of beneficiaries, helping the transfer of government subsidies during the present COVID-19 in a timely and transparent manner.
At present, NACH is only on the days when banks are functional. From August 1, this facility will be available on all days of the week.
“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 said.
Commenting on the RBI announcement, Raghuvir Gakhar, CEO, PC Financial, told FE Online, “This is a big step by NPCI in fulfilling ambitious dream of Digital India…it will not only benefit millions of people in getting timely govt benefits, pensions and scholarships. It will benefit large organisations to make bulk payments.”
“ 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, CEO, FinShell.
The RBI MPC today decided to keep policy rates on hold while stating its intention to continue injecting more liquidity in financial markets, including buying government debt.
Dr. Alok Sheel, RBI Chair Professor in Macroeconomics at ICRIER, said monetary policy was already very accommodative, with the real repo rate in negative territory. Despite inflationary pressures it seemed unlikely that the central bank would tighten policy as this could derail the recovery underway.
“The RBI does not expect CPI inflation in 2021-22 to exceed its upper target of 6%, so it understandably continues to focus on its secondary monetary policy target of stabilising the business cycle, which was already in serious trouble even before Covid-19. It may be observed that RBI’s accommodative stance long preceded the Covid downturn,” he said.