What changed
The Government of India requested that all government-related transactions for FY 2023-24 be accounted for within the financial year. RBI has now mandated that all agency bank branches dealing with government business remain open on March 31, 2024, a Sunday, to facilitate this.
What it means for you
Banks must ensure their government business branches are operational on the last day of the financial year, even though it's a Sunday. This is critical for accurate year-end closing of government accounts. Failure to comply could lead to reconciliation issues and regulatory scrutiny.
What you must do
- Ensure all branches handling government receipts and payments are open on March 31, 2024 (Sunday).
- Arrange adequate staffing and systems to process government transactions smoothly on that day.
- Issue internal circulars and public notices (e.g., SMS, website, branch boards) about the Sunday banking availability.
- Coordinate with your treasury and IT teams to ensure seamless transaction recording and reporting.
Who it affects
All agency banks (public and private sector banks handling government business), Branch managers of government business branches, Treasury and operations teams of scheduled commercial banks
Which branches need to be open on March 31, 2024?
Only branches that deal with government receipts and payments (agency bank branches) must remain open. Other branches can follow normal Sunday closure.
What transactions are covered under this directive?
All government-related receipts and payments for FY 2023-24, such as tax collections, government disbursements, and other agency transactions.
What happens if a branch fails to open?
Non-compliance may lead to delayed booking of government transactions, potential penalties from RBI, and audit observations for the financial year closing.