RBI announced that from 1st August, NPCI operated NACH payment system will be enabled to make transfer 24×7. Hence, soon payments and settlement systems will be functioning for 365 days a year, barring zero exceptions. Let’s see how that would function.
Crux of the Matter
India’s payment settlement system National Automated Clearing House (NACH), operated by NPCI, will now be available for 365 days a year.
Real Time Gross Settlement (RTGS) facility will now be functional on bank holidays as well. NACH is primarily used to make one-to-many payment transfers like salary, dividends, pension, etc.
Nations Which Avail Such Services
Few nations in the world, such as the UK, Sweden, Australia, Hong Kong, SA, South Korea, Singapore, and China avail such round the clock payment transfer services.
- Founded in 2008, NPCI is currently governed by the Reserve bank of India and the ministry of finance. It has Dilip Asbe (IAS) as its MD and CEO. NPCI governs systems like RuPay and Aadhar enabled Payment system.