Year-End Govt Account Closing: Special Measures for FY 2006-07
Current · Source: Reserve Bank of India · RBI/2006-07/293 · issued 23 Mar 2007 · ~2 min read
Quick answerRBI directs agency banks to extend banking hours from March 26-31, 2007, keep counters open on March 31 even if a holiday, and conduct special evening clearings on March 30-31 to ensure all government tax receipts are credited by fiscal year-end.
The rule, in the simplest words
Agency banks must extend banking hours from March 26 to March 31, 2007, to accommodate late tax payments.
Counters must be kept open on March 31, 2007, even if it's a local holiday under the Negotiable Instruments Act.
Special evening/night clearings will be conducted on March 30 and 31, 2007, to ensure same-day credit to government accounts.
How it plays out — a real example
As an agency-banking (government business) officer in Indore, I need to ensure that our bank's counters are open late on March 31, 2007, to accommodate taxpayers who want to make last-minute payments. I also need to coordinate with the local clearing house to conduct special clearings in the evening to ensure that all government tax receipts are processed and credited before the fiscal year closes.
What changed
RBI, in consultation with the Controller General of Accounts, mandated extended banking hours for government business counters from March 26 to March 31, 2007, including on March 31 even if it is a holiday under the Negotiable Instruments Act. Special clearing with return clearing was also ordered for the evenings of March 30 and 31, 2007, to realize and credit government accounts by March 31.
What it means for you
Agency banks must prepare for late-hour taxpayer rush and ensure all government tax receipts are processed and credited before the fiscal year closes. Banks need to coordinate with local clearing houses for special clearings and keep counters operational even on holidays. This is a one-time operational directive for FY 2006-07 year-end closing.
What you must do
Extend banking hours for government business counters from March 26 to March 31, 2007, to accommodate late tax payments.
Keep counters open on March 31, 2007, even if it is a local holiday under the Negotiable Instruments Act.
Arrange special evening/night clearings on March 30 and 31, 2007, with local clearing house approval to ensure same-day credit to government accounts.
Issue immediate instructions to all branches handling government business to implement these measures.
Who it affects
State Bank of India and its associate banks, All public sector banks, IDBI Ltd., HDFC Bank Ltd., ICICI Bank Ltd., UTI Bank Ltd., Jammu & Kashmir Bank Ltd., Regional Offices of RBI
❓ Common questions
Why are extended hours and special clearings needed for FY 2006-07 closing?
To handle the year-end rush of tax payments and ensure all government transactions are accounted for by March 31, 2007, as required by the Government of India.
What if March 31, 2007 is a bank holiday in my state?
You must still keep government business counters open on that day, as the directive overrides the holiday under the Negotiable Instruments Act for these transactions.
Who must approve the special clearing on March 30 and 31?
The President of the local Clearing House run by RBI or the agency bank must approve the special clearing, considering operational convenience at each centre.
📜 Read the original circular — full text as issued by RBI
RBI/2006-07/293
DGBA.GAD.No.H-14214/42.01.029/2006-07
March 23, 2007
The Chairman & Managing Director /
Managing Director
State Bank of India and its Associate Banks /
All Public Sector Banks / IDBI Ltd. /
HDFC Bank Ltd. / ICICI Bank Ltd. /
UTI Bank Ltd. / Jammu & Kashmir Bank Ltd.
Dear Sir,
Annual Closing of Government Accounts - Transactions
of Central/State Governments - Special Measures for the
Current Financial Year (2006-07)
With a view to facilitating accounting for all the Government transactions of the current financial year (2006-07) by March 31, 2007 as desired by the Government of India and in order to meet the probable rush of tax-payers towards the end of the year, it has been decided, in consultation with Controller General of Accounts, Government of India, to take the following special measures in regard to conduct of Government transactions:
i) All Regional Offices of Reserve Bank of India (RBI) and branches of Agency banks conducting Government business will suitably extend the banking hours to conduct Government business by keeping their counters open for the purpose from March 26, 2007 to March 31, 2007 to facilitate receipt of taxes etc. from members of public even at late hours.
ii) The Regional Offices of RBI and branches of Agency banks conducting Government business will keep their counters open even in the States where March 31, 2007 is declared a holiday under the Negotiable Instruments Act and conduct Government transactions as indicated in para (i) above.
iii) Special clearing (with return clearing) will be conducted in the evening/night of March 30 and 31, 2007, with the approval of the President of local Clearing Houses run by Reserve Bank of India/Agency bank keeping in view the operational convenience at the local centres so that the clearing instruments received from members of public are realized and credited to Government account by March 31, 2007.
2. You are requested to issue immediate instructions to all concerned and implement the above instructions.
3. Please acknowledge receipt.
Yours faithfully,
(M.T. Varghese)
General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-07/293 · issued 23 Mar 2007. The plain-English explanation above is BankPulse’s own independent summary.
Extend banking hours for government business counters from March 26 to March 31, 2007, to accommodate late tax payments.
Keep counters open on March 31, 2007, even if it is a local holiday under the Negotiable Instruments Act.
Issue immediate instructions to all branches handling government business to implement these measures.
⚙️ Operations
Arrange special evening/night clearings on March 30 and 31, 2007, with local clearing house approval to ensure same-day credit to government accounts.
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, IDBI Ltd., HDFC Bank Ltd., ICICI Bank Ltd., UTI Bank Ltd., Jammu & Kashmir Bank Ltd., Regional Offices of RBI), your first concrete step on “Year-End Govt Account Closing: Special Measures for FY 2006-07” is: “Extend banking hours for government business counters from March 26 to March 31, 2007, to accommodate late tax payments.” (RBI issued this 23 Mar 2007).
Circular: RBI/2006-07/293 -- Year-End Govt Account Closing: Special Measures for FY 2006-07
Issued: 23 Mar 2007
Action required: Extend banking hours for government business counters from March 26 to March 31, 2007, to accommodate late tax payments.
Action required: Keep counters open on March 31, 2007, even if it is a local holiday under the Negotiable Instruments Act.
Action required: Arrange special evening/night clearings on March 30 and 31, 2007, with local clearing house approval to ensure same-day credit to government accounts.
Action required: Issue immediate instructions to all branches handling government business to implement these measures.
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
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=3369&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.