PSBs must remit e-payments to govt in T+1 day from Nov 1, 2010
Current · Source: Reserve Bank of India · RBI/2010-11/229 · issued 08 Oct 2010 · ~2 min read
Quick answerPublic Sector Banks must remit all government e-payments to the government account within T+1 working day (including put through date), effective November 1, 2010, aligning with the norm already applicable to Private Sector Banks.
The rule, in the simplest words
From November 1, 2010, government banks (called Public Sector Banks) must send all electronic payments (e-payments) meant for the government into the government's account within 1 working day after the payment is made (this is called T+1).
This new rule applies to all government e-payments, including the day the payment is processed (called the 'put through date').
Before this rule, government banks had a different time limit, but now they must follow the same fast rule as private banks (Private Sector Banks).
Government banks need to update their computer systems and train their staff to make sure payments are sent quickly, so the government gets its money faster.
How it plays out — a real example
A forex & trade-finance officer in Indore processes a customer's e-payment for income tax on November 2, 2010. Under the new rule, she must ensure the money reaches the government's account by the end of the next working day, November 3, 2010, instead of the old longer timeline. She double-checks her bank's system to confirm the remittance is sent on time, helping the government manage its cash better.
What changed
Previously, Public Sector Banks had a different remittance timeline for e-payments into government accounts. Based on a Committee recommendation by the Controller General of Accounts, the RBI has now mandated a uniform T+1 working day norm for PSBs, matching the existing requirement for Private Sector Banks.
What it means for you
PSBs must accelerate their internal processes to ensure government e-payments are credited within one working day, reducing float and improving government cash management. This levels the playing field with private banks and may require system upgrades or process changes to meet the tighter deadline.
What you must do
Update internal systems and procedures to remit all government e-payments within T+1 working day effective November 1, 2010.
Train operations staff on the new timeline and ensure compliance monitoring.
Coordinate with treasury and IT teams to automate remittance workflows if not already in place.
Review any existing agreements with government departments to align with the revised norm.
Who it affects
Public Sector Banks (State Bank of India and associates, nationalised banks, Jammu & Kashmir Bank), Government treasury and accounting departments, Bank operations and IT teams handling e-payments
❓ Common questions
Regulatory timeline
Stated effective dateeffective November 1, 2010
Decoded by BankPulse2026-06-19 04:07 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What does T+1 working day mean in this context?
It means the remittance must be completed within one working day after the transaction date, including the day the payment is put through. For example, if an e-payment is processed on Monday, the funds must reach the government account by Tuesday.
Does this apply to all government transactions or only e-payments?
This circular specifically applies to all government transactions made through e-payments. Other modes of payment may have different timelines.
When does this new norm take effect?
The revised remittance period is effective from November 1, 2010. Banks must ensure compliance from that date onward.
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/229
DGBA.GAD.No.H. 2444 /42.01.011/2010-11
October 8, 2010
The Chairman & Managing Director / Managing Director
State Bank of India and its Associates/
All Nationalised Banks and
Jammu & Kashmir Bank Ltd.
Dear Sir/Madam,
Permissible period for remittance of e-payments into
Government account by Public Sector Banks
Please refer to our circular letter No.RBI./2008/09/97 (Ref. DGBA. GAD. No.H-549/42.01.011/2008-09 dated July 18, 2008 ) on the above subject.
2. In this context, we advise that a Committee was constituted by the Controller General of Accounts, Ministry of Finance, Government of India, to review the permissible period for transfer of funds to Government account in case of e-payment and other related issues. The Committee recommended that the remittance norm of T+1 working day (including put through date) for e-payment as applicable for Private Sector Banks may also be made applicable for the Public Sector Banks.
3. Based on the recommendations of the Committee, it has now been decided that the remittance period in respect of all Government transactions made through e-payments in respect of Public Sector Banks will be T+1 working day (including put through date) w.e.f. November 1, 2010.
4. You may, therefore, arrange to remit the Government revenue accordingly.
Yours faithfully
(G. C. Biswal)
Deputy General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/229 · issued 08 Oct 2010. The plain-English explanation above is BankPulse’s own independent summary.
Train operations staff on the new timeline and ensure compliance monitoring.
💻 IT / Systems
Update internal systems and procedures to remit all government e-payments within T+1 working day effective November 1, 2010.
Coordinate with treasury and IT teams to automate remittance workflows if not already in place.
📜 Compliance
Review any existing agreements with government departments to align with the revised norm.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (Public Sector Banks (State Bank of India and associates, nationalised banks, Jammu & Kashmir Bank), Government treasury and accounting departments, Bank operations and IT teams handling e-payments), your first concrete step on “PSBs must remit e-payments to govt in T+1 day from Nov 1, 2010” is: “Update internal systems and procedures to remit all government e-payments within T+1 working day effective November 1, 2010.” (RBI issued this 08 Oct 2010).
Circular: RBI/2010-11/229 -- PSBs must remit e-payments to govt in T+1 day from Nov 1, 2010
Issued: 08 Oct 2010
Action required: Update internal systems and procedures to remit all government e-payments within T+1 working day effective November 1, 2010.
Action required: Train operations staff on the new timeline and ensure compliance monitoring.
Action required: Coordinate with treasury and IT teams to automate remittance workflows if not already in place.
Action required: Review any existing agreements with government departments to align with the revised norm.
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
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BankPulse Compliance Evidence Pack — generated 03 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=6033&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.
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