Year-End Tax Collection: Extended Banking Hours on March 31, 2006
Current & verified — this is the latest version
Source: Reserve Bank of India · RBI/2005-06/328 · issued 21 Mar 2006 · ~2 min read
Quick answerRBI directs agency banks to extend hours on March 31, 2006, for tax receipts. Special clearing must be arranged, and press communiqués issued from March 25. No taxpayer should be turned away.
The rule, in the simplest words
On March 31, 2006, banks must keep counters open late so people can pay taxes, and no one can be sent away without paying.
Banks must run a special evening/night check-clearing (clearing: moving money from one bank to another) so tax payments go to the government on the same day.
From March 25, 2006, banks must put a notice in newspapers (English, Hindi, and local languages) listing which branches accept taxes, so people don't crowd one branch.
The extended hours and special rules are only for receiving taxes, not for other bank services.
How it plays out — a real example
An agency-banking (government business) officer in Indore, Priya, works at a branch that handles government taxes. On March 31, 2006, she keeps her counter open until 8 PM, accepting tax payments from a long line of people. She also makes sure the cheques she takes are sent to a special evening clearing so the government gets the money that same day, just as the RBI rule says.
What changed
RBI instructed agency banks and its own offices to extend banking hours on March 31, 2006, to handle the year-end rush for tax payments. Banks must conduct special evening/night clearing with return clearing to ensure same-day credit to government accounts. A press communiqué must be released from March 25, 2006, listing designated branches to evenly distribute taxpayer load.
What it means for you
Banks must prepare for extended operations on the last day of the financial year, prioritizing tax collection over other services. This increases operational costs and security requirements but ensures government revenue targets are met. Non-compliance could lead to taxpayer complaints and regulatory scrutiny.
What you must do
Extend banking hours on March 31, 2006, at branches authorized for government business, ensuring counters remain open for tax deposits.
Arrange special clearing with return clearing on the evening/night of March 31, 2006, with approval from the local clearing house president.
Issue a press communiqué from March 25, 2006, in English, Hindi, and vernacular newspapers listing designated tax-accepting branches.
Ensure no taxpayer is turned away; manage security aspects at each branch.
Advise public via press release to deposit taxes well before March 31 to avoid last-minute rush.
Who it affects
State Bank of India and its associate banks, All public sector banks, Jammu & Kashmir Bank Ltd., HDFC Bank Ltd., ICICI Bank Ltd., UTI Bank Ltd., IDBI Ltd., All agency banks conducting government business, Reserve Bank of India offices
❓ Common questions
Why are extended hours needed on March 31, 2006?
To accommodate the year-end rush of taxpayers depositing direct/indirect taxes before government accounts close for the financial year 2005-06.
What happens if a taxpayer arrives after normal banking hours?
Branches must keep counters open for tax deposits; no assessee should be turned away without paying tax.
Do these instructions apply to all bank transactions?
No, they apply only to receipt of taxes, not other banking services.
📜 Read the original circular — full text as issued by RBI
RBI/2005-06/328
DGBA.GAD.No.H-14396/42.01.029/2005-06
March 21, 2006
The Chairman/Chairman & Managing Director/Managing Director
State Bank of India & its Associate Banks
All Public Sector Banks
Jammu & Kashmir Bank Ltd.
HDFC Bank Ltd/ICICI Bank Ltd.
UTI Bank Ltd/IDBI Ltd.
Dear Sir,
Annual Closing of Accounts - Receipt of Central /State Government Taxes (Direct/Indirect) –Arrangements for the Current Financial Year (2005-06)
We have received requests from Government of India for extension of the banking hours on March 31, 2006 by offices of Reserve Bank and branches of Agency banks conducting Government business so that the receipts of taxes are facilitated till late hours on that date. Accordingly, with a view to meeting the probable rush of tax payers on account of closing of Government Accounts for the current Financial Year (2005-06), it has been decided that the agency banks and Reserve Bank Offices should provide usual facilities to assessees for deposit of taxes on March 31, 2006 (Friday ). Depending on the Government requirements and the rush of the assessees for payment of taxes, you may suitably extend the banking hours of your branches authorised to conduct Government business by keeping the counters open for the purpose, taking into account security aspects of the bank branch concerned. No assessee should be turned away from the bank without payment of tax.
2. Special clearing (with return clearing) may be conducted in the evening/night of March 31,2006 with the approval of the President of Local Clearing Houses run by RBI/Agency Bank keeping in view the operational convenience at the local centres so that the cheques deposited are realized and credited to Government account on the same day.
3. A Press Communique may also be released by the Agency Banks for the information of the public and tax payers in all leading dailies, in English, Hindi and vernacular, notifying the names of branches of the agency banks in the respective town/cities which are designated to accept taxes, so that the pressure on bank branches is evenly distributed. The press communiqué should be issued right from March 25, 2006 and thereafter be repeated. It may be specially mentioned in the press communiqué that in view of the expected rush, public may deposit taxes well before March 31, 2006.
4. The instructions as above apply only to receipt of taxes.
Yours faithfully,
(M.T.Varghese)
General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/328 · issued 21 Mar 2006. The plain-English explanation above is BankPulse’s own independent summary.
Extend banking hours on March 31, 2006, at branches authorized for government business, ensuring counters remain open for tax deposits.
Issue a press communiqué from March 25, 2006, in English, Hindi, and vernacular newspapers listing designated tax-accepting branches.
Ensure no taxpayer is turned away; manage security aspects at each branch.
⚙️ Operations
Arrange special clearing with return clearing on the evening/night of March 31, 2006, with approval from the local clearing house president.
📜 Compliance
Advise public via press release to deposit taxes well before March 31 to avoid last-minute rush.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Branch Manager at a bank this circular applies to (State Bank of India and its associate banks, All public sector banks, Jammu & Kashmir Bank Ltd., HDFC Bank Ltd., ICICI Bank Ltd., UTI Bank Ltd., IDBI Ltd., All agency banks conducting government business, Reserve Bank of India offices), your first concrete step on “Year-End Tax Collection: Extended Banking Hours on March 31, 2006” is: “Extend banking hours on March 31, 2006, at branches authorized for government business, ensuring counters remain open for tax deposits.” (RBI issued this 21 Mar 2006).
Circular: RBI/2005-06/328 -- Year-End Tax Collection: Extended Banking Hours on March 31, 2006
Issued: 21 Mar 2006
Action required: Extend banking hours on March 31, 2006, at branches authorized for government business, ensuring counters remain open for tax deposits.
Action required: Arrange special clearing with return clearing on the evening/night of March 31, 2006, with approval from the local clearing house president.
Action required: Issue a press communiqué from March 25, 2006, in English, Hindi, and vernacular newspapers listing designated tax-accepting branches.
Action required: Ensure no taxpayer is turned away; manage security aspects at each branch.
Action required: Advise public via press release to deposit taxes well before March 31 to avoid last-minute rush.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2788&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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