According to the new set of rules directed by the Reserve Bank of India (RBI) at the beginning of August, NACH will be operational 24 hours a day. With this change, which will be implemented in all national and private banks, people will be able to get their cheques cleared even on weekends and would not have to wait for weekdays to get the money. The cheque user will be able to get their cheques cleared on any day, even on a holiday.
However, this change will affect people who are in the habit of clearing their cheques on a working day. Such people will need to adjust their operations as cheques signed by them can be cleared on a non-working day too.
While this new rule gives an advantage to people, making the process less time-consuming, however, bank account holders will have a keep a minimum balance in their bank account at all times as fast clearance time comes with a warning.
So, if your cheque is getting processed faster and if it bounces, in such cases, you will have to pay a fine or penalty. To save this extra hassle, it is always safe to keep a minimum amount in your bank account.
This was not a point of worry earlier as cheques were not cleared on weekends or holidays, and by weekdays, many customers adjusted their balances on weekdays, avoiding these scenarios. But, the new rule by the RBI is a major shift in banking processes.
National Automated Clearing House (NACH), a bulk payment system operated by the National Payments Corporation of India (NCPI), facilitates transactions, including salaries, pensions, interest, dividends. NACH also facilitates payments of various kinds of bills such as electricity, water, gas, phone, loan EMI, and mutual funds. With RBI's new mandate, all such facilities can be done on weekends.
