You need to be careful while paying through cheque. On August 1, the Reserve Bank of India (RBI) has made some changes in the banking rules. The central bank has now decided to provide round the clock bulk clearing facility. The National Automated Clearing House (NACH) is working round the clock since this month.
Now that NACH is working full day, you need to be extra careful while making payment through cheque. Since the check can go for clearing round the clock, it can be encashed on non-working days, holidays also. Therefore, before issuing the cheque, make sure that you have enough money in your bank account, otherwise your check will bounce. If the check bounces, you will have to pay the penalty amount.
What is NACH?
NACH is a wholesale payment system operated by the National Payments Corporation of India (NPCI). It facilitates multiple credit transfers such as dividend, interest, salary and pension payments. It also facilitates collection of payments related to electricity, gas, telephone, water, loan installments, investments in mutual funds and insurance premiums.
New payment rules for checking excess amount
In order to enhance the security of cheque-based transactions, RBI introduced a ‘Positive Payment System’ in January this year. This may require reconfirmation of details for payments exceeding ₹50,000. Under this process, the person issuing the check re-verifies the details of the check issued. This includes the check number, date of the check, name of the payee, account number, amount, etc.
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