If you pay through cheque, then be more careful before issuing a check to any person. The Reserve Bank of India (RBI) has made some changes in the banking rules from August 1. The central bank has now decided to provide round the clock bulk clearing facility. National Automated Clearing House (NACH) is working 24×7 since this month.
Now since NACH is working all day, you need to be extra careful while making payment through cheque. Because the check can go for clearing and it can be redeemed even on non-working days, holidays. Therefore, before issuing the cheque, make sure that there is sufficient amount in the bank account, otherwise your check will bounce. You will have to pay the penalty amount if the check bounces.
What is NACH?
NACH is a bulk payment system operated by National Payment Corporation of India (NPCI). It provides the facility of multiple credit transfer like payment of dividend, interest, salary and pension. It also provides the facility for collection of payments related to electricity, gas, telephone, water, loan installments, mutual fund investments and insurance premiums.
For higher amount cheques New Payment Rules for
RBI in January this year implemented a ‘Positive Pay System’ Under this, re-verification of details may be required for payments above Rs 50,000. Under this process, the person issuing the check re-enters the details related to the check issued Is. This includes check number, check date, check receiver name, account number, amount etc.