RBI Changed the Rule: If you choose to pay by check in money-to-money transactions or anywhere else, then you may need to take some precautions. The Reserve Bank of India has made some changes in the rules for making payments through cheques. These changes have also come into effect from August 1 on behalf of RBI.
Under this new change, RBI has decided to start the facility of bulk clearing round the clock. After which the National Automated Clearing House i.e. NACH will work for the whole day from this month itself.
RBI Changed the Rule
You need to be more careful now to make payment by cheque after the NACH rule for full working days, as thereafter the process of clearing the check will continue even on holiday and non-working days. So before you make payment by check, make sure that you have sufficient funds in your bank account at the time of deducting the check, otherwise, your check may bounce, and in such a situation you may have to pay a penalty.
What is NACH?
NACH is a bulk payment system operated by the National Payments Corporation of India (NPCI), which facilitates one-to-many credit transfers in payment of dividends, interest, salary, and pension. Apart from this, payments related to electricity, gas, telephone, water, periodic installments for loans, investments in mutual funds, and insurance premiums can also be made.
In January this year, RBI had introduced the Positive Pay system with an aim to enhance the security of its customers in case of check-based transactions that require re-verification of details for payments above Rs 50,000.