The Reserve Bank of India has made a big announcement regarding NACH, in which it has been said that NACH service will work 24 hours a day. Earlier NACH used to function only on working days.
After the announcement made by RBI regarding NACH, now the time of SIP registration will be reduced significantly.
If you also want to invest in mutual funds through SIP (Systematic Investment Plans), then there is good news for you. Now you will not have to wait much for SIP registration and this registration process will be completed soon. Actually, the Reserve Bank of India has made a big announcement regarding NACH, in which it has been said that NACH service will work 24 hours a day. Earlier NACH used to function only on working days.
After the announcement made by RBI regarding NACH, now the time of SIP registration will be reduced significantly. Actually, earlier it used to take 2-3 weeks to do SIP registration through NCHAH, but now this time is likely to be much less. Earlier, its timing could be fixed on the functioning of the investor’s bank, but after the new rules of RBI, it will accelerate.
A Live Mint report quoted Ganesh Ram, CEO, Mutual Fund Utilities, as saying, “With NACH working all day, the time of SIP registration will be reduced and the investment experience will be better than before.” In such a situation, it can be said that people investing in SIP are going to benefit a lot due to the new rules of RBI.
What is NACH?
Let us tell you that NACH is one such banking service. Through which companies and common man complete their every payment of every month easily and without any tension. Bulk payments are made through NACH. For example, payment of salary, dividend to shareholders, payment of interest, transfer of pension etc. is also involved in this. Along with this, every month bills like electricity, telephone, water are also paid through it.
Role of NACH in SIP?
Actually, NACH is a one-time registration process, which allows an investor to make lump sum or SIP investments in mutual funds. By entering the NACH Mandate, you authorize the concerned bank to debit the money from the bank to fund the investment to the mutual fund house. You can also do this for a time period and tell in advance how often and how much money should be debited from your bank account.
Let us tell you that there are two types of NACH Mandate. There is a NACH debit. It is commonly used for telephone bill payment, SIP in mutual funds and payment of electricity bills. The other is NACH credit. NACH credit is used to pay salary, dividend. NACH Mandate is the approval given by you to the institutions to deduct and deposit money from your account.
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