Personal Finance

RBI: Salary, pension & EMI rules to change from 1 August 2021

According to the new rules, it is no longer an issue if the first day of the month is a weekend. Salary and pension will now be credited on the first day of the month, regardless of it being a weekday or weekend. 

Reserve Bank of India’s Governor, Mr Shaktikanta Das, announced in the bi-monthly policy review that the National Automated Clearing House (NACH) will now be available on all seven days to make transactions. It is now convenient for customers to leverage real-time gross settlement services (RTGS) around the clock. 

Bank customers can avail of these services from 1 August 2021. Currently, NACH is only available from Monday to Friday, making it inconvenient for bank customers when the first day of the month falls on a weekend. 

The latest development is beneficial for salaried employees as they will pay their bills and EMIs on a timely basis. 

NACH is a web-based solution provided by the National Payments Corporation of India (NPCI) to aid interbank, high volume, electronic transactions. It is a centralised system for repeat transactions, such as distributing salaries, pensions, dividends, etc. and bulk transactions, such as electricity bills, water bills, insurance premiums, investment in mutual funds, etc.

For any clarifications/feedback on the topic, please contact the writer at jyotsna.singh@cleartax.in

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