Home › Circulars › RBI/2020-21/114

Special Clearing for Govt Cheques on March 31, 2021

Current · Source: Reserve Bank of India · RBI/2020-21/114 · issued 26 Mar 2021 · ~1 min read
Quick answerRBI mandates special clearing for government cheques on March 31, 2021, across CTS grids in Delhi, Chennai, and Mumbai. Banks must participate, keep infrastructure open, and maintain sufficient settlement balances.
The rule, in the simplest words
How it plays out — a real example

Riya, a government cheque processing officer at a Delhi CTS grid, wakes up early on March 31 to double‑check that her bank’s clearing system is running smoothly during the 5:00‑5:30 PM and 7:00‑7:30 PM windows. She confirms that the settlement account has enough balance, then calmly processes the cheques, knowing she’s helping the government close its accounts on time.

What changed

RBI issued a circular on March 26, 2021, requiring special clearing operations exclusively for government cheques on March 31, 2021. Normal Wednesday timings apply, with special presentation from 5:00 PM to 5:30 PM and return clearing from 7:00 PM to 7:30 PM across all three CTS grids.

What it means for you

Banks must ensure their inward clearing systems are operational during the extended hours and have adequate settlement account balances to cover obligations. This ensures all government transactions for FY 2020-21 are accounted for by March 31, preventing year-end delays.

What you must do

Who it affects

All Scheduled Commercial Banks, Regional Rural Banks, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Local Area Banks, Payment Banks, Small Finance Banks, National Payments Corporation of India

❓ Common questions

What is the purpose of this special clearing?

To facilitate accounting of all government transactions for the financial year 2020-21 by March 31, 2021.

What are the timings for the special clearing?

Presentation clearing is between 5:00 PM and 5:30 PM, and return clearing is between 7:00 PM and 7:30 PM on March 31, 2021.

Is participation optional for banks?

No, participation is mandatory for all banks listed in the circular.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 840 kb ) Special Clearing operations on March 31, 2021 RBI/2020-21/114 DPSS.CO.RPPD.No./SUO 28065/03.01.02/2020-21 March 26, 2021 The Chairman and Managing Director / Chief Executive Officer All Scheduled Commercial Banks including Regional Rural Banks / Urban Co-operative Banks / State Co-operative Banks / District Central Co-operative Banks / Local Area Banks / Payment Banks / Small Finance Banks / National Payments Corporation of India Madam / Dear Sir, Special Clearing operations on March 31, 2021 A reference is invited to the circular issued by Department of Government and Bank Accounts (DGBA) vide DGBA.GBD.No.S212/42.01.029/2020-21 dated March 25, 2021 addressed to all the agency banks on Annual Closing of Government Accounts – Transactions of Central/State Governments – Special Measures for the Financial Year (2020-21) 2. Normal clearing timings as applicable to any working “Wednesday” shall be followed on March 31, 2021. Further, to facilitate accounting of all the Government transactions for the current financial year (2020-21) by March 31, 2021, it has been decided to conduct Special Clearing exclusively for Government Cheques across the three CTS grids on March 31, 2021, as detailed below- Location Presentation Clearing Return Clearing CTS Grids (New Delhi, Chennai and Mumbai) Between 17.00 and 17.30 hours Between 19.00 and 19.30 hours 3. It is mandatory for all banks to participate in the special clearing operations on March 31, 2021. All the member banks under the respective CTS Grids are required to keep their inward clearing processing infrastructure open during the Special Clearing hours and maintain sufficient balance in their clearing settlement account to meet settlement obligations arising out of the Special Clearing. 4. Member banks under the respective CTS Grids are advised to adhere to the instructions contained in this circular as well as instructions issued by the President of the respective CTS grid. Member banks may also be guided by the circular NPCI/2016-17/CTS/Circular No.32 dated October 3, 2016 issued by NPCI to all member banks regarding clearing type for instruments to be presented in special clearing sessions. Yours faithfully (P. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2020-21/114 · issued 26 Mar 2021. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
⚙️ Operations
  • Participate mandatorily in the special clearing on March 31, 2021
  • Keep inward clearing processing infrastructure open during the specified hours
  • Maintain sufficient balance in your clearing settlement account to meet obligations
📜 Compliance
  • Follow instructions from the respective CTS grid President and NPCI circular dated October 3, 2016
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 Operations officer at a bank this circular applies to (All Scheduled Commercial Banks, Regional Rural Banks, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Local Area Banks, Payment Banks, Small Finance Banks, National Payments Corporation of India), your first concrete step on “Special Clearing for Govt Cheques on March 31, 2021” is: “Participate mandatorily in the special clearing on March 31, 2021” (RBI issued this 26 Mar 2021).

  1. Circular: RBI/2020-21/114 -- Special Clearing for Govt Cheques on March 31, 2021
  2. Issued: 26 Mar 2021
  3. Action required: Participate mandatorily in the special clearing on March 31, 2021
  4. Action required: Keep inward clearing processing infrastructure open during the specified hours
  5. Action required: Maintain sufficient balance in your clearing settlement account to meet obligations
  6. Action required: Follow instructions from the respective CTS grid President and NPCI circular dated October 3, 2016
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. 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.

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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=12047&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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