What changed
The closure date for residual March 2021 government transactions was originally April 10, 2021. Due to holidays on April 10 (second Saturday) and April 11 (Sunday), the Government of India moved the closure to April 12, 2021. Banks must now report all residual March transactions by 2:00 PM on April 12, not April 10.
What it means for you
Agency banks get two extra days to finalize March 2021 government transactions, but must maintain strict separation between March residual and April transactions. Nodal branches need to prepare separate scrolls for each period and ensure March transactions are booked in FY 2020-21 accounts. This avoids accounting mix-ups and ensures accurate government cash reporting.
What you must do
- Update internal systems and branch instructions to reflect the new closure date of April 12, 2021.
- Ensure nodal/focal point branches prepare separate scrolls for March residual and April transactions.
- Verify that all March 2021 transactions up to March 31 are booked in FY 2020-21 accounts, not mixed with April entries.
- Submit all residual March 2021 transactions to RBI by 2:00 PM on April 12, 2021.
- Communicate the change immediately to all concerned branches and focal points.
Who it affects
All agency banks handling central government transactions, Nodal and focal point branches of agency banks, Bank branches dealing with government revenue, tax collections, and payments
Why was the closure date changed from April 10 to April 12?
April 10, 2021, was a second Saturday and April 11 a Sunday, both holidays. The Government of India decided to extend the closure to April 12 to account for these non-working days.
What happens if we mix March residual transactions with April transactions?
RBI has explicitly instructed that March 2021 residual transactions must be kept separate from April 2021 transactions. Mixing them could lead to accounting errors and non-compliance with the circular. Nodal branches must prepare separate scrolls for each period.
Is the earlier circular from March 18, 2021, still valid?
Yes, all other instructions from the March 18 circular remain operational, except the closure date is now April 12 instead of April 10. Banks must adhere to those instructions with the updated date.