Alert! RBI’s new rule on cheques may result in penalties if you’re not careful
Rule for cheque
The central bank has decided to keep the National Automated Clearing House (NACH) operational 24 hours a day.
If you make payments through cheque, then there is important news for you. Now, you have to be more careful before giving a cheque to any person or organization. The Reserve Bank of India (RBI) has made major changes in banking rules that came into effect on August 1.
The central bank has decided to keep the National Automated Clearing House (NACH) operational 24 hours a day. This rule will be applicable in all nationalized and private banks also.
Under this new rule, your cheque will be cleared even on a holiday. Even though it will reduce the time for clearance, now you also need to be cautious because now the cheque issued on Saturday can be cleared on Sunday also. That is, you have to keep a balance in your account at all times for the clearance of the cheque, otherwise, if your check bounces, you may have to pay a penalty. Earlier, while issuing the check, the customer felt that it would be cleared only after the holiday. But now it can be cleared even on a holiday.
Notably, NACH is a bulk payment system that is operated by the National Payments Corporation of India (NPCI). It facilitates various types of credit transfers such as dividends, interest, salary and pensions. Apart from this, the facility of payment of electricity bill, gas, telephone, water, loan EMI, mutual fund investment and insurance premium payment is also provided. This means that now you will not have to wait for Monday to Friday i.e. weekdays to get all these facilities, these will be done on weekends as well
