Finance Dragon Update: As announced earlier on June 4, 2021, the National Automated Clearing House (NACH) Payment System operated by National Payments Corporation of India (NPCI) will now be available 24×7 from tomorrow, August 1, 2021.
This means your RTGS payments will be processed all through the day unlike earlier when this facility was only available during office hours and business days.
In case you did not know, NACH helps in making credit transfers such as dividends, interest, salaries, pensions, and so on and in collecting payments such as utility payments, loan EMIs, ECS transactions such as SIPs and so on. The government also uses it to transfer direct benefits such as LPG subsidies, or any other subsidies like those announced for COVID-19 relief.
The Reserve Bank of India (RBI) statement read, “Effective 1 August 2021 all the sessions that are currently available on normal working days will be operational on all days including week end and other holidays.”
For those who do not know, NPCI is an RBI subsidiary and serves as an umbrella organisation to operate all retail payments and settlement systems in India. It is owned by a consortium of major banks in the country. Some of its offerings include the Unified Payments Interface (UPI), the BHIM app and the RuPay payment service system.