What changed
RBI, in consultation with the Controller General of Accounts, mandated extended banking hours on March 30 and 31, 2010, for government business counters. It also required special clearing with same-day return clearing on those evenings to expedite realization of government revenue instruments.
What it means for you
Banks must keep government counters open late on the last two working days of the financial year to handle the year-end rush of tax payments. The special clearing ensures cheques and instruments for government revenue are processed and credited to the government account by March 31, reducing outstanding floats.
What you must do
- Extend banking hours for government business counters on March 30 and 31, 2010, as per local needs.
- Arrange special clearing with same-day return clearing on March 30 and 31, 2010, with local clearing house approval.
- Issue immediate instructions to all branches handling government business to implement these measures.
- Acknowledge receipt of this circular to RBI.
Who it affects
All agency banks conducting government business, Jammu & Kashmir Bank Ltd., Regional Offices of RBI
Why are extended hours and special clearing needed?
To manage the year-end rush of tax payments and ensure all government revenue is accounted for by March 31, 2010, as per the financial year closing.
Who approved these special measures?
The measures were decided in consultation with the Controller General of Accounts, Government of India.
What is the deadline for crediting government revenue?
All government revenue must be realized and credited to the government account by March 31, 2010.