What changed
RBI has directed all Currency Chest holding banks to keep their chests operational on March 31, 2025, which is a public holiday. This aligns with an earlier circular requiring bank branches handling government receipts and payments to stay open that day. The move ensures smooth accounting of government transactions for the financial year.
What it means for you
Banks must ensure Currency Chests are fully staffed and functional on March 31, 2025, despite it being a holiday. This will facilitate timely settlement of government transactions and avoid year-end accounting delays. Non-compliance could disrupt government cash flows and attract regulatory scrutiny.
What you must do
- Keep all Currency Chests open on March 31, 2025, with full staffing and normal operating hours.
- Notify all linked branches about the extended operations to coordinate government transaction processing.
- Ensure adequate cash and system readiness to handle year-end government receipts and payments.
- Review internal protocols to align with the February 11, 2025 circular on government transaction closures.
Who it affects
All Currency Chest holding banks, Branches dealing with government receipts and payments, Linked branches of Currency Chests
Why is March 31, 2025, a public holiday but still a working day for Currency Chests?
March 31 is the last day of the financial year, and RBI requires all government transactions to be accounted for in FY 2024-25. Despite being a public holiday, Currency Chests must operate normally to support these closures.
What happens if a Currency Chest does not open on March 31, 2025?
Non-compliance may disrupt government transaction settlements, leading to accounting mismatches and potential regulatory action from RBI. Banks should ensure full adherence to avoid penalties.
Do we need to inform our linked branches separately?
Yes, the circular explicitly advises Currency Chest holding banks to keep linked branches suitably informed about the extended operations on March 31, 2025.