The National Automated Clearing House (NACH) function was formerly only available when banks were opening, which was usually Monday through Friday. On days when the bank was closed, such as Sundays, bank holidays, and even gazetted holidays, auto-debit instructions set by the bank account holder were not processed.
The Reserve Bank of India’s (RBI) recent guidelines to make bulk clearing available 24 hours a day have resulted in various adjustments to the cheque payment system. The new rules took effect on August 1st of this year. The Reserve Bank of India’s (RBI) recent recommendations requiring bulk clearing to be available 24 hours a day have resulted in a number of changes to the cheque payment system. The new restrictions went into effect on August 1st, 2018.
Due to previous restrictions, the payment was not credited on holidays because most employers use NACH to pay salaries. The National Payments Corporation of India (NPCI) operates NACH, a bulk payment system that allows for one-to-many credit transfers such as dividend, interest, wage, and pension payments.
In January of this year, the RBI implemented the “positive pay system” to protect high-value bank check transactions. It will be eligible to receive checks with a value of $50,000 or more.
The ‘Positive Pay System’ is an automatic fraud detection technology that compares specific information about the cheque presented for clearing, such as its number, date, payee name, account number, and amount, to specific information about the cheque presented for clearing.
