Know more about agency banks to remain open on March 31

Last day of FY: The banks dealing with government business, its receipts, and related payments will remain open for transactions on March 31, the Reserve Bank of India (RBI) has said. The RBI directive is to account for all the government transactions relating to receipts and payments in the FY 2023-24, as per an RBI statement. Notably, the last day of the current financial year is a Sunday. 

"The Government of India has made a request to keep all branches of the banks dealing with Government receipts and payments open for transactions on March 31, 2024 (Sunday) to account for all the Government transactions relating to receipts and payments in the FY2023-24 itself," the Reserve Bank of India said in a statement.  

Accordingly, agency banks are advised to keep all their branches dealing with government business open on March 31, 2024 (Sunday), the RBI statement further added. 

NEFT, RTGS 

The transactions processed through the National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) System will continue operating till midnight on March 31, 2024, as per the usual practice. 

Besides, transactions related to the below-mentioned government business conducted by agency banks are considered to be agency commission:  

These include revenue receipts and payments on behalf of the Central/State Government and pension payments for both Central and State Governments, Special Deposit Scheme (SDS) 1975.  Public Provident Fund (PPF) Scheme, 1968,  Senior Citizen Savings Scheme (SCSS), 2004, Kisan Vikas Patra, 2014, and Sukanya Samriddhi Account, and any other task specifically designated by the Reserve Bank for agency commission, such as Relief Bonds/Savings Bonds transactions. 

Cheque clearing 

Banks that qualify as Agency Banks have been advised by the RBI to present all cheques related to government accounts for clearances. The timing for presenting and returning these instruments during the special clearing sessions for government cheques will be communicated at a later date. Transactions concerning government business related to the government business conducted by agency banks qualify for agency commission. 
As per the RBI website, the central bank conducts government banking business through its own offices and selected commercial banks acting as its agents. Section 45 of the Reserve Bank of India Act, 1934, allows scheduled commercial banks to be appointed as agents across India for specified purposes, considering public interest and banking convenience. 

(With PTI inputs)