What changed
RBI, in consultation with the Controller General of Accounts, mandated that all agency bank branches and RBI regional offices keep counters open for government business during late hours on March 30 and 31, 2011. A separate communication on special clearing arrangements will follow from the Payment and Settlement Systems department.
What it means for you
Banks must prepare for extended counter operations specifically for government tax and revenue collections on the last two days of the financial year. This is a recurring year-end measure to prevent last-minute bottlenecks and ensure all government receipts are credited before the March 31 cutoff.
What you must do
- Extend banking hours for government business counters on March 30 and 31, 2011, as directed.
- Issue immediate instructions to all branches handling government transactions.
- Coordinate with RBI regional offices for any special clearing arrangements to be announced separately.
- Acknowledge receipt of this circular to the issuing office.
Who it affects
All agency banks conducting government business, Jammu & Kashmir Bank Ltd., Regional Offices of Reserve Bank of India
Why is RBI asking banks to extend hours only for government business?
To ensure all government revenue receipts from taxpayers are accounted for within the current financial year (2010-11) by March 31, avoiding any carry-over or delays in government accounts.
Does this circular apply to all bank branches or only those handling government transactions?
It applies specifically to branches of agency banks and RBI regional offices that conduct government business. Regular retail banking hours are not mandated to change.