RBI Monetary Policy Announcements: NPCI operated NACH availability ALERT! Effective from this date - Know credit transfers facility details here

In the bi-monthly Monetary Policy announcements on Friday, the Reserve Bank of India Governor Shaktikanta Das extended the availability of the National Automated Clearing House or NACH on all days of the week. NACH is a bulk payment system operated by the NPCI and facilitates one-to-many credit transfers such as payment of dividend, interest, salary, pension, etc and also a collection of payments pertaining to electricity, gas, telephone, water, periodic installments towards loans, investments in mutual funds, insurance premium, etc.

“In order to further enhance customer convenience, and to leverage the 24x7 availability of RTGS, NACH which is currently available on bank working days, is proposed to be made available on all days of the week effective from August 1, 2021.  

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“The relevant instructions /circulars for all these measures will be issued separately,” Das said in his statement.  

“NACH has emerged as a popular and prominent mode of direct benefit transfer (DBT) to large number of beneficiaries. This has helped transfer of government subsidies during the present COVID-19 in a timely and transparent manner,” the statement read.  
Among other major announcements, Governor Das kept key policy rates unchanged with repo rate at 4 per cent while the reverse repo rate at 3.35 per cent. The MPC also maintained status quo on Marginal standing facility (MSF) and bank rates. MSF is a window for banks to borrow from the Central Bank in an emergency situation when inter-bank liquidity dries up completely.

The RBI has also maintained its accommodative stance till it was necessary, Das said.

The three-day MPC meeting held between 2-4 June was the 29th meeting of the monetary policy committee.