FY 2007-08 Year-End: Extended Hours & Special Clearing for Govt Accounts
Current · Source: Reserve Bank of India · RBI/2007-08/265 · issued 25 Mar 2008 · ~2 min read
Quick answerRBI directs agency banks to extend banking hours on March 29 & 31, 2008, and conduct special same-day clearing to ensure all government revenue receipts are credited by March 31, 2008.
The rule, in the simplest words
Keep the government business counters (places where people pay taxes) open later on March 29 and March 31, 2008.
Do special clearing (quick processing of cheques and other payment papers) with same‑day return clearing on those two evenings, after getting approval from the local clearing house president.
Make sure every government revenue instrument received is credited to the government account by March 31, 2008.
Send immediate instructions to all branches that handle government transactions to follow these steps.
How it plays out — a real example
Ramesh, the senior officer in the Government Business Department at a State Bank of India branch in Delhi, extended the counter hours until 8 pm on March 29 and again on March 31, 2008. He also coordinated with the local clearing house president to run same‑day return clearing that night, so that all tax cheques collected that day were posted to the government account before the financial year closed.
What changed
RBI, in consultation with the Controller General of Accounts, mandated extended banking hours on March 29 and 31, 2008, for government business counters. It also required special clearing with same-day return clearing on those dates to expedite realization of government revenue instruments.
What it means for you
Banks handling government business must keep counters open late on the specified dates to accommodate the year-end rush of taxpayers. The special clearing ensures that cheques and instruments for government revenue are processed and credited to the government account before the financial year closes, preventing any shortfall in government receipts.
What you must do
Extend banking hours for government business counters on March 29 and 31, 2008, as per local needs.
Arrange special clearing with same-day return clearing on those dates, with local clearing house approval.
Issue immediate instructions to all branches handling government transactions to implement these measures.
Ensure all government revenue instruments are realized and credited to the government account by March 31, 2008.
Who it affects
State Bank of India and its associate banks, All public sector banks, IDBI Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., Jammu & Kashmir Bank Ltd., All agency banks conducting government business
❓ Common questions
Why are extended hours and special clearing needed for March 29 and 31, 2008?
To handle the year-end rush of taxpayers and ensure all government revenue transactions are accounted for by March 31, 2008, the close of the financial year.
Who must approve the special clearing arrangements?
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.
Which banks are specifically required to follow these instructions?
State Bank of India and its associates, all public sector banks, IDBI Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Axis Bank Ltd., and Jammu & Kashmir Bank Ltd., along with all agency banks handling government business.
📜 Read the original circular — full text as issued by RBI
RBI/2007-08/265
DGBA.GAD.No.H- 10256/42.01.029/2007-08
March 25, 2008
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. /
Axis 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 (2007-08)
With a view to facilitating accounting for all the Government transactions of the current financial year (2007-08) by March 31, 2008 and meeting 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 on March 29 and 31, 2008 to facilitate receipt of Government revenue from members of public even at late hours.
ii) Special clearing (with return clearing on the same day) shall be conducted in the evening/night of March 29 and 31, 2008, 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 relating to Government revenue received from members of public are realized and credited to Government account by March 31, 2008.
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/2007-08/265 · issued 25 Mar 2008. The plain-English explanation above is BankPulse’s own independent summary.
Extend banking hours for government business counters on March 29 and 31, 2008, as per local needs.
Issue immediate instructions to all branches handling government transactions to implement these measures.
⚙️ Operations
Arrange special clearing with same-day return clearing on those dates, with local clearing house approval.
📜 Compliance
Ensure all government revenue instruments are realized and credited to the government account by March 31, 2008.
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., Axis Bank Ltd., Jammu & Kashmir Bank Ltd., All agency banks conducting government business), your first concrete step on “FY 2007-08 Year-End: Extended Hours & Special Clearing for Govt Accounts” is: “Extend banking hours for government business counters on March 29 and 31, 2008, as per local needs.” (RBI issued this 25 Mar 2008).
Circular: RBI/2007-08/265 -- FY 2007-08 Year-End: Extended Hours & Special Clearing for Govt Accounts
Issued: 25 Mar 2008
Action required: Extend banking hours for government business counters on March 29 and 31, 2008, as per local needs.
Action required: Arrange special clearing with same-day return clearing on those dates, with local clearing house approval.
Action required: Issue immediate instructions to all branches handling government transactions to implement these measures.
Action required: Ensure all government revenue instruments are realized and credited to the government account by March 31, 2008.
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=4085&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.