What changed
RBI has scheduled special clearing sessions under CTS exclusively for government cheques on March 30 and March 31, 2024, to ensure all government transactions for FY 2023-24 are accounted by March 31. Normal Saturday timings apply on March 30 for regular clearing, but special sessions run from 5:00-5:30 PM for presentation and 7:00-7:30 PM for returns on both days.
What it means for you
Banks must keep their inward clearing infrastructure operational during these special hours and maintain sufficient settlement account balances to cover obligations. This is mandatory for all scheduled commercial banks, RRBs, urban/state/district co-op banks, local area banks, payment banks, small finance banks, and NPCI. Non-compliance could disrupt year-end government accounting.
What you must do
- Ensure your CTS inward clearing systems are fully functional during the special sessions on March 30 and 31, 2024.
- Maintain adequate balances in your clearing settlement account to meet all settlement obligations from these sessions.
- Brief your operations and treasury teams on the special timings: presentation 5:00-5:30 PM, return 7:00-7:30 PM.
- Coordinate with NPCI and the National Grid Clearing House for any operational clarifications.
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
Is participation in this special clearing optional?
No, RBI has made it mandatory for all banks listed in the circular to participate in the special clearing operations on both March 30 and 31, 2024.
What happens if my bank does not maintain sufficient settlement account balance?
You must maintain enough balance to meet settlement obligations from the special clearing. Failure could disrupt the clearing process and attract regulatory action, as per standard RBI norms.