Last updated on July 30th, 2022 at 09:01 pm
NACH-ECS Clearing now for 365 days a year
During the COVID-19 outbreak, NACH facilities became a popular digital mode of transacting in timely and a transparent manner. As a result, the Reserve Bank of India amended the rules of the National Automated Clearing House (NACH) to facilitate clearing on all 365 days a year (with no holidays) effective from 1st August 2021. RBI has advised banks to make necessary arrangements of manpower on all 365 days for smooth functioning and processing of transactions.
National Automated Clearing House (NACH)
NACH is a web-based solution that facilitates the bulk payment system for electronic transactions and interbank transactions. National Automated Clearing House (NACH) was implemented and is being managed by the National Payments Corporation of India(NPCI) has implemented for all the Banks, Financial Institutions, Corporates, and Government.
What is the amendment in rules of NACH by NPCI?
With the rollout of NACH facilities clearance of cheques will happen on all 365 days of the year including weekends and holidays. Practically, now in real terms, the benefit of 24×7 RTGS, NEFT will be made available to everyone. Banks have advised customers to maintain sufficient balance for the clearance of cheques. For e.g. if a cheque is issued on Saturday it may go for clearing on Sunday itself.
Effective Date – 1st August 2021
NPCI Circular – Circular no. 005 dated 12th July 2021
Until 31st July 2021, the NACH facilities were available only on bank working days excluding weekends and holidays).
Every coin has two sides, you can get credit for your salaries, pension, interest on a weekend at the same time payment for EMI, insurance premiums, or various other bills that can be get debited on a weekend.
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With the advent of NACH facilities, whether we have facility of one more day, if the last day falls on a week end ..( Refer sec 10. General clauses act )