NACH SYSTEM
High charges on NACH, ECS debit bounce: Even 17% return on mutual fund SIP may not be enough to recover penalties
Mutual fund SIP has become a popular tool for small retail investors to do small regular savings and get the benefit of higher returns from equity market. This facility empowers these small retail investors in a big way. However, the banking facility of ECS/NACH debit which allows automatic monthly deduction can turn this into a nightmare with very high bounce charges especially for small investors if they miss even one investment payment.
RBI Retail Direct: NACH facility now available for investing in government bonds, T-bills; how it is better than UPI
Reserve Bank of India has enabled payments through National Automated Clearing House (NACH) in the Retail Direct Website. Now an investor can place bids for various government bonds, treasury bills, state development loans and sovereign gold bonds (SGBs) using NACH facility on RBI Retail Direct Website. Read below to know how does it work.
This new mutual fund SIP mandate rule will kick in from October 1, 2023
Earlier, perpetual SIP had no end date. This will be effective from October 1, 2023. This is as per a circular issued by the National Automated Clearing House on August 18, 2023.
Centre extends deadline till Dec 31 for enabling Aadhaar-based payment for MGNREGA workers
The Central government has extended the deadline for enabling payment of wages for MGNREGA workers through the Aadhaar-based payment system (ABPS) till December 31. It has made it clear to all the states that beneficiaries who come for work should be requested to provide an Aadhaar number, but will not be refused work on this basis.
Up to 90 per cent MGNREGS workers expected to be ABPS eligible by June-end: Officials
The ministry has asserted that workers will not be refused work if they do not have an Aadhaar number. So far, around 74.9 per cent active workers have been marked eligible for the payment system, according to data on the ministry's website. The rural development ministry has asked states to organise camps and follow-up with beneficiaries to achieve 100 per cent coverage under ABPS. It has also clarified that beneficiaries should be requested to provide their Aadhaar number, but should not be refused work if they do not have one.
Centre asks states to link Aadhaar with bank accounts of workers by May end, identify 'laggard areas'
In a letter to states, the ministry of rural development has asked them to try and ensure that this exercise is over by May end, a senior official told ET. The government has decided to make the Aadhaar-Based Payment System (ABPS) compulsory for settling wages under the scheme from July 1.
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Aadhaar-based pay must for MGNREGS wages from July 1
The rural development ministry then decided to continue to allow payments through both ABPS and the usual electronic payment through the National Automated Clearing House (NACH) until March 31. It later extended the deadline to June 30.
Aadhaar-linked NREGS payments to get more time
The directive for a mandatory use of the Aadhaar-Based Payment System (ABPS) under the MGNREGS from February 1 had stoked massive protests by workers, many of whom claimed that they were being deprived of payments due to technical glitches. Subsequently, the rural development ministry decided to allow payments through both the ABPS and the usual National Automated Clearing House (NACH) electronic payment system until the end of March.
Mixed payment mode for MGNREGS wages to continue till March 31
If the beneficiary is linked with ABPS then payment can be made through ABPS only, and if the beneficiary is not linked with ABPS due to some technical reasons etc. then Program Officer can select NACH as the mode of payment of wages. The number of active workers under the Mahatma Gandhi NREG Scheme is 14.96 crore.
PNB hikes RTGS, NEFT charges, revises NACH e-mandate fees
The bank has proposed an increase in RTGS and NEFT fees, which took effect on May 20, 2022. The bank also changed the e-mandate fees for the National Automated Clearing House (NACH).
RBI Policy increases NACH mandate for MSMEs
Governor Shaktikanta Das said it will increase National Automated Clearing House (NACH) mandate limit for Trade Receivables Discounting System (TReDS) settlements from Rs 1 crore at present to Rs 3 crore
Decoding SME lending in the 21st century
With the pandemic providing renewed impetus to MSMEs to digitalize and formalize, proprietors are becoming increasingly comfortable with having their business needs met digitally.
Indian banks bounce rates lowest since Covid began
Bounce rates rates tracked by NPCIs e-NACH platform came in at 33.0% and 26.8% by volume and value respectively for the month of August. In July these figures were at 33.2% and 27.4% by volume and value. This was down from a high of 35.9% and 30.7% in volume and value, registered in the month of May.
Now get salary, pension credited on Sundays and bank holidays
NACH is a bulk payment system operated by the NPCI which facilitates one-to-many credit transfers such as payment of dividend, interest, salary, pension, as also collection of payments pertaining to electricity, gas, telephone, water bills, periodic installments towards loans, investments in mutual funds, insurance premium etc.
3 rule changes that will impact your money from August 1
From August 1, your salary credit into your bank account, auto-debits related to mutual fund SIPs, home/car/personal loans EMI payments, bill payments such as telephone bills, gas payments, electricity bills etc. will take place even on bank holidays.
Now a bank holiday won’t stop your loan EMI, SIP debits, salary credits: So track account balance
Currently, any auto-debit instructions given by the account holder does not get processed on days the bank is closed like Sundays, bank holidays and gazetted holidays. Also, because most companies use NACH for salary credits etc these also do not happen on bank holidays.
National Automated Clearing House to be available on all days from August 1: RBI
NACH 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.
How will RBI’s money policy impact bond mart, borrowers, home budget
While the central bank did not change its repo rate, it did make certain changes to its forecasts, announced more relief measures for hard-hit citizens and businesses and provided hope for the future beyond the second wave.
NACH will be operational 365 days a year from August 1
The move follows the central bank’s previous decisions to make both its RTGS and NEFT functional 24 hours a day
ETtech Exclusive: NPCI bulks up for one billion transactions per day
Hit by several snags of late, NPCI aims to finish IT upgrades of all four transaction channels—UPI, IMPS, AePS and NACH—amid a surge in digital payments.
NPCI admits to teething issues that caused trouble for MF investors
After reports of investors missing out on market rally due to technical glitches, the National Payments Corporation of India on Wednesday admitted to "teething issues" with a newly implemented system.
High bounce rates indicate trouble ahead for lenders
Most banks and NBFCs have claimed of achieving near normal collection efficiency levels, but data suggests that Covid has altered borrower repayment behaviour.
From small to big: The evolution of MSME lending in 2020 and the role of fintech
The Union Minister for MSME, Nitin Gadkari, has outlined a plan to increase the sector’s GDP contribution to 50% from the current 29%, as India works towards the ambitious $5-trillion target that it has set for its economy.
The future of Aadhar and eKYC-based solutions
According to a Omidyar Network-BCG report, estimates of digital lending to MSMEs in India will go upto Rs 6-7 lakh crore by 2023.
Government likely to meet FY19 digital payments target
Optimism is also buoyed by the higher adoption of digital payments during the festive season sales in October and November, industry executives.
ET in the Classroom: Investing in Fund SIPs Using NACH
NACH is a onetime registration process which allows an investor to register systematic investment plans (SIPs) in MFs.
Some SIPs, few Sighs: Bumpy start for new clearing system
Typically, a first-time customer fills an application form and a NACH mandate which is a request to the bank to debit his SIP instalment every month.
NACH mandates create operational hurdes in SIPs
All new SIPs have moved from Electronic clearing service (ECS) mandates to NACH mandates since April this year.
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