Mumbai: The Reserve Bank of India has proposed to make available National Automated Clearing House (NACH) on all days of the week throughout the year, effective August 1, 2021.
“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”said RBI governor Shaktikanta Das during the announcement of the bi-monthly monetary policy.
NACH is a bulk payment system operated by NPCI, 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 installments towards loans, investments in mutual funds, insurance premium, etc.
NACH has emerged as a popular and prominent digital mode of direct benefit transfer (DBT) to large number of beneficiaries. This has helped transfer of government subsidies during the present COVID-19 in a timely and transparent manner. NACH is currently available only on the days when banks are functional.