NPCI’s bulk payment system to be available 24X7 from 1 August
RBI recently announced that NEFT money transfer has now become 24X7 facility.
National Automated Clearing House (NACH) payment system will be available on all days of the week from August 1. “In order to further enhance customer convenience, and to leverage the 24×7 availability of 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 said today.
What is NPCH?
NACH, a bulk payment system operated by the NPCI, facilitates one-to-many credit transfers such as payment of dividend, interest, salary, pension, etc., as also a collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds, insurance premium, etc.
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 COVID-19 in a timely and transparent manner,” said RBI Governor.
The Reserve Bank of India (RBI) has left the benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance as the economy faces the heat of the second COVID wave.
This is the sixth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo. RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.