The Reserve Bank of India (RBI) on Wednesday advised banks to keep its branches dealing with government business to remain open on March 31. 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) so as to account for all the Government transactions relating to receipts and payments in the FY2023-24 itself," the RBI said in a statement.
Accordingly, agency banks are advised to keep all their branches dealing with government business open on March 31, 2024 (Sunday), it said.
In response to the request from the Government of India, the Reserve Bank of India (RBI) issued a directive to ensure that all banking branches handling government transactions extend their operating hours to include March 31, 2024, which unusually falls on a Sunday, marking the end of the financial year. This decision underscores the importance of accommodating the high volume of fiscal activities typically seen as the financial year draws to a close. The primary objective is to facilitate a seamless processing of both incoming and outgoing governmental financial transactions, thereby ensuring that all such activities are duly accounted for within the fiscal year 2023-24.
The RBI's advisory aims to preempt potential backlogs and system overloads that could arise from the convergence of fiscal deadlines and routine banking closures. By keeping these branches open, the RBI intends to provide ample opportunity for the completion of essential government transactions, which include but are not limited to tax payments, duty settlements, and receipt of government revenues. This move is also expected to aid in the smooth transition into the new financial year without any carryover of pending transactions.
Moreover, the RBI's directive reflects a broader strategy to bolster the financial system's efficiency and responsiveness, particularly in handling government-related financial operations. It also signifies the central bank's commitment to upholding fiscal discipline and ensuring transparency in the accounting of government finances. This decision is anticipated to benefit various stakeholders, including taxpayers, government departments, and financial institutions, by providing a more flexible and accessible banking environment during this critical accounting period.