Salary will no longer be delayed due to bank holiday; EMI will also be deducted on the due date
New Delhi, 5th June 2021: The facility of the National Automated Clearing House (NACH) will now be available seven days a week. Giving information about the decisions of the monetary policy review, Reserve Bank of India (RBI) Governor Shaktikanta Das announced this on Friday. This arrangement will come into effect from August 1. This simply means that one’s salaries will no longer stop just because the banks are closed on the scheduled date.
Along with this, any kind of Equated Monthly Installment (EMI) or any other kind of fixed due amount, including home loan, auto loan and personal loan, will now be deducted from the account on the same day.
Under the present system, the NACH is operated during the working days of the banks. However, an advantage for loan customers is that if they do not have the EMI amount in their account as on the stipulated date, they will have some incentive to electronically deposit a sufficient amount in the account in the event of a bank holiday and the EMI being deducted on the next day. This is because the facility of electronically transferring funds from any bank account to another account is available round the clock.
RBI said that in order to enhance customer convenience and to take full advantage of Real-Time Gross Settlement (RTGS), it has been decided to continue NACH facility seven days a week and round the clock.
