What changed
RBI, in consultation with the Controller General of Accounts, mandated extended banking hours on March 30 and 31, 2009, for government business counters at all agency bank branches and RBI regional offices. Additionally, special clearing with return clearing on the same day was to be arranged on those dates, with local clearing house approval, to ensure government revenue instruments are realized and credited by March 31.
What it means for you
Banks handling government business must prepare for extended operations and late-hour clearing to accommodate the year-end rush of taxpayers. This ensures all government receipts are accounted for in the correct financial year, reducing reconciliation issues. Operational teams need to coordinate with local clearing houses and arrange staffing for extended hours.
What you must do
- Extend banking hours for government business counters on March 30 and 31, 2009, as per RBI directive.
- Arrange special same-day clearing on March 30 and 31 with approval from the local clearing house president.
- Issue immediate instructions to all branches and concerned departments to implement these measures.
- Ensure all government revenue instruments are processed and credited to government accounts by March 31, 2009.
Who it affects
Agency banks conducting government business (SBI, associate banks, public sector banks, IDBI, HDFC, ICICI, Axis, J&K Bank), Regional Offices of Reserve Bank of India, Local clearing houses run by RBI or agency banks
Why were extended hours and special clearing needed?
To facilitate accounting of all government transactions for FY 2008-09 by March 31, 2009, and manage the year-end rush of taxpayers.
Which banks were specifically addressed in this circular?
State Bank of India and its associate banks, all public sector banks, IDBI Bank, HDFC Bank, ICICI Bank, Axis Bank, and Jammu & Kashmir Bank.
What was the deadline for crediting government revenue?
All government revenue received from the public had to be realized and credited to the government account by March 31, 2009.