If you pay by cheque, be extra cautious before writing a cheque to anyone. The Reserve Bank of India (RBI) enacted several banking regulatory amendments that took effect from 1 August 2021. The central bank has chosen to make bulk clearance available 24 hours a day, seven days a week. From August, the National Automated Clearing House (NACH) has been functioning 24 hours a day.

NACH, operated by the National Payments Corporation of India’s (NPCI) is a bulk payment system that enables one-to-many credit transfers such as dividend, interest, wage, and pension payments. It also makes it easier to collect payments for utilities like energy, gas, phone, and water, as well as loan payments, mutual fund investments, and insurance premiums.

Because NACH is now available 24 hours a day, you must be especially cautious while making a cheque payment because it may be cleared and encashed even on non-working days and holidays. So, when you write a check, be sure your bank account has enough money in it; otherwise. The cheque will bounce.

The Reserve Bank of India (RBI) adopted a ‘Positive Pay' mechanism in January this year to improve the security of cheque-based transactions. For payments over Rs.50,000, the ‘Positive pay system' may need re-confirmation of important facts on the cheque. The issuer of the cheque sends facts about the cheque presented for clearings, such as the cheque number, cheque date, payee name, account number, amount, and other details, electronically against a list of cheques previously authorised and issued by the issuer.

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