Pension Payment News: From 1 August 2021, you will not have to wait for the weekend to pass to get your salary, pension, interest, dividend, and other payments and investments credited into your bank account as the Reserve Bank of India today said the National Automated Clearing House (NACH) will be available on all days of the week.
“In order to further enhance customer convenience, and to leverage the 24×7 availability of real-time gross settlement (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,” RBI Governor Shaktikanta Das informed today while announcing the bi-monthly monetary policy review.
The facilities are currently available only when banks are open, usually between Monday to Friday.
What is NACH?
NACH, a bulk payment system operated by the National Payments Corporation of India (NPCI) facilitates one-to-many credit transfers such as payment of dividend, interest, salary, and pension.
It also facilitates the collection of payments pertaining to electricity, gas, telephone, water, periodic installments towards loans, investments in mutual funds, and insurance premiums.
NACH has emerged as a popular and prominent mode of direct benefit transfer (DBT) to a large number of beneficiaries.
This has helped the transfer of government subsidies during the present coronavirus situation in a timely and transparent manner, RBI stated.
With the implementation of the NACH system, NPCI intends to provide a single set of rules (operating and business), open standards, and best industry practices for electronic transactions, which are common across all the participants, service providers, users, etc.
NACH system also supports Financial Inclusion measures initiated by Government, Government Agencies, and Banks by providing support to Aadhaar based transactions.
The NACH system provides a robust, secure, and scalable platform to the participants with both transaction and file-based transaction processing capabilities. It has best-in-class security features, cost efficiency & payment performance (STP) coupled with a multi-level data validation facility accessible to all participants across the country.
NACH’s Aadhaar Payment Bridge (APB) System, developed by NPCI has been helping the Government and Government Agencies in making the Direct Benefit Transfer scheme a success. APB System has been successfully channelizing the Government subsidies and benefits to the intended beneficiaries using the Aadhaar numbers. The APB System links the Government Departments and their sponsor banks on one side and beneficiary banks and beneficiary on the other hand.
Source: Internet Media