RBI New Rules: Salary, SIP payments, EMIs, Insurance Premium rules to change from August 1

Tomorrow is August 1 and there will be certain changes in the banking transactions from next month. These modifications include that your salary will be credited on Sundays and gazetted holidays. The apex bank, Reserve Bank of India (RBI) has recently announced that the National Automated Clearing House (NACH) will remain functional all days of the week from August 1, 2021.

Operated by the National Payments Corporation of India, NACH helps in facilitating credit transfers such as payment of dividends, interest, salary and pension. It also facilitates the collection of payments pertaining to electricity, gas, telephone, instalments towards loans, investments in mutual funds and insurance premium. 

Currently, this facility of crediting salary is operational on working days of banks and therefore, the auto-debits are not allowed on bank holidays, gazetted holidays and even Sundays. “In order to further enhance customer convenience, and to leverage the 24×7 availability of real-time gross settlement (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 had said.

This is aimed at reducing the duration of salary processing which includes salary credits, bill payments, insurance premiums and loan EMIs. Earlier, it was delayed due to bank holidays and this auto-transfer facility has helped the transfer of government subsidies during the present COVID-19 in a timely and transparent manner, RBI said.

Recently, RBI Governor Shaktikanta Das had announced several key financial, economic measures amid the pandemic. Among other measures, he had announced 24×7 availability of RTGS and NACH from August 1, 2021.

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