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Economy
Mahesh

01/08/21 04:05 AM IST

RBI's new rules on interchange fee, 24/7 bulk clearing facility functional

In News 
  • The Reserve Bank of India's new directions on raising interchange fee and making available the facility of bulk clearing round the clock have become effective.
Details 
  • The RBI in June raised the interchange fee for financial transactions from Rs 15 to Rs 17, while for non-financial transactions the increase was done from Rs 5 to Rs 6.
  • These new rates have become applicable from August 1, 2021, as per the RBI's direction.
  • Besides, National Automated Clearing House (NACH) has been made available on all days of the week, effective August 1, 2021.
  • An interchange fee is a fee that is charged by the banks to the merchant who processes a credit card or debit card payment.

About NACH 

  • NACH, a bulk payment system operated by the National Payments Corporation of India (NPCI) facilitates one-to-many credit transfers such as payment of dividend, interest, salary and pension.
  • It also facilitates collection of payments pertaining to electricity, gas, telephone, water, periodic instalments towards loans, investments in mutual funds and insurance premium.
  • Earlier, the facility was available only when the banks were open, generally between Monday to Friday. So the auto-debit instructions provided by the bank account holder were not processed on days when the banks were closed such as Sundays, bank holidays and gazetted holidays. 
How change will affect us? 

  • By making the bulk payment system-NACH available on all days of the week, salary payments to employees would become smoother as most companies use NACH for salary credits.
  • Earlier, due to the non-availability of the facility on holidays or Sundays, the salary payments could not happen on those days and usually got delayed to the next working day.
  • In fact, with the new changes, all the transactions conducted using the NACH system can now be done anytime, any day of the week. 

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