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
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.