RBI new rule: Bank Customer Alert: Customers, who are doing banking transactions this month, here is an important update for you. From the beginning of this month, the Reserve Bank of India (RBI) has brought out a new set of rules regarding changes in the banking rules. One such change will now affect people who depend on cheques, specifically their cheque books.
As per the RBI new rule, the National Automated Clearing House (NACH) has been made available on all days from 1 August 2021. Consequently, NACH will be available on all 7 days of the week.
This new rule will benefit the chequebook users as their issued cheques will be easily cleared on a holiday. This means that the issued cheques will be cleared on a Saturday or Sunday too.
However, the customers, who are in the habit of clearing their cheques on a working day, need to adjust their operations because, with the new rule change, cheques can be cleared on a Sunday too. This new rule is less time-consuming.
What you should be mindful of the new NACH rules?
Now as NACH is available on all days, you need to be extra careful when making a payment via cheque as it can go for clearing and get encashed even on non-working days and holidays. So, before issuing a cheque, ensure that the bank account has a sufficient balance otherwise the cheque will bounce. If the cheque bounces, you will have to pay a penalty amount.
New payment rule for high-value chequesIn January this year, RBI implemented a ‘Positive Pay’ system to enhance the safety of cheque-based transactions. Under the ‘Positive pay system’ for cheque re-confirmation of key details may be needed for payments beyond ₹50,000.
NACH is a centralized system, launched with an aim to consolidate multiple ECS systems running across the country and provides a framework for the harmonisation of standards and practices without local barriers/inhibitors.
NACH system will provide a national footprint and is expected to cover the entire core banking-enabled bank branches spread across the country irrespective of the location of the bank branch.
Since now NACH will be available on all days, bank customers need to be extra careful when making a payment via cheque as it can go for clearing and get encashed even on non-working days and holidays.