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
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.