RBI announces all agency banks will operate for public on March 31

The Reserve Bank of India (RBI) has urged all agency banks managing government transactions to stay open on March 31, 2024. As the final day of the fiscal year 2023-24 falls on a Sunday, the central bank stated that the Indian Government specifically requested all branches handling government receipts and payments to operate on this day. This measure aims to ensure all transactions for the fiscal year 2023-24 are duly recorded.

“The Government of India has requested that all bank branches dealing with government transactions remain open for business on March 31, 2024 (Sunday) to facilitate the processing of all government transactions related to the fiscal year 2023-24,” the RBI mentioned in a statement.

Which banks will be operating on March 31?

Please be aware that only selected branches of agency banks will be open for transactions on Sunday, March 31, 2024.

Therefore, the RBI notification dated March 20, 2024, advises Agency Banks to ensure that all branches handling government transactions remain open for business on Sunday, March 31, 2024. Banks are instructed to publicize the availability of these banking services on that day.

Banks that will remain open on March 31

Scheduled Public Sector banks (post amalgamation)

• Bank of Baroda
• Bank of India
• Bank of Maharashtra
• Canara Bank
• Central Bank of India
• Indian Bank
• Indian Overseas Bank
• Punjab and Sind Bank
• Punjab National Bank
• State Bank of India
• UCO Bank
• Union Bank of India

Scheduled Private Sector Banks

• Axis Bank Ltd.
• City Union Bank Ltd.
• DCB Bank Ltd
• Federal Bank Ltd.
• HDFC Bank Ltd.
• ICICI Bank Ltd.
• IDBI Bank Ltd.
• IDFC FIRST Bank Ltd
• IndusInd Bank Ltd
• Jammu and Kashmir Bank Ltd. (Approved for limited agency business)
• Karnataka Bank Ltd.
• Karur Vysya Bank Ltd.
• Kotak Mahindra Bank Ltd.
• RBL Bank Ltd
• South Indian Bank Ltd.
• Yes Bank Ltd.
• Dhanlaxmi Bank Ltd.
• Bandhan Bank Ltd.
• CSB Bank Ltd.
• Tamilnad Mercantile Bank Ltd.

Foreign Banks

• DBS Bank India Limited

What does the term ‘agency bank’ mean?

According to the central bank website, the RBI conducts government banking through its own offices and commercial banks, public and private, acting as its agents. Section 45 of the Reserve Bank of India Act, 1934, allows for the appointment of scheduled commercial banks as agents across India, considering factors like public interest and banking convenience.

The RBI manages the Principal Accounts of Central and State Governments at its Central Accounts Section in Nagpur. It has established a well-organized system for revenue collection and payments on behalf of the government nationwide. Government Banking Divisions of RBI and branches of agency banks conduct government transactions. Currently, all public sector banks and selected private sector banks serve as RBI’s agents, with only designated branches conducting government banking.

What prompted RBI to request banks to operate on Sunday?

Typically, banks close on Sundays and the 2nd and 4th Saturdays of each month. However, the RBI stated, “The Government of India has requested all bank branches handling government transactions to operate on March 31, 2024 (Sunday) to ensure all fiscal year 2023-24 government transactions are accounted for.”

Consequently, Agency Banks are instructed to keep all government business branches open on March 31, 2024. Banks must also publicize the availability of these banking services on this day.

April 1 Bank Holiday

All states will have bank closures to facilitate year-end account closure, as per the RBI bank holiday page.

The Reserve Bank of India annually releases a list of bank holidays, categorizing them as: ‘Holiday under Negotiable Instruments Act’, ‘Holiday under Negotiable Instruments Act and Real Time Gross Settlement Holiday’, and ‘Banks’ Closing of Accounts’.

The tax department is operational on March 31

In light of pending tax tasks, the Income-tax department has revoked the extended weekend for its staff. “To ensure the conclusion of pending departmental duties, all Income Tax Offices across India will remain operational on March 29th, 30th, and 31st, 2024,” stated the Income-tax department in a directive dated March 31, 2024.

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