The Reserve Bank of India (RBI) has mandated that all agency banks maintain their designated branches open for over-the-counter transactions related to government dealings until regular working hours on March 30 and March 31, 2024.
As per the RBI notification issued on March 20, 2024, the Government of India has requested the continued operation of all bank branches handling government receipts and payments on March 31, 2024 (Sunday). This request aims to ensure the inclusion of all fiscal year 2023-24 government transactions within the appropriate financial period. Consequently, Agency Banks are instructed to maintain the accessibility of all their branches engaged in government affairs on March 31, 2024 (Sunday).
Additionally, according to a press release issued by the RBI on March 22, 2024, in order to enhance convenience for taxpayers, it has been decided that RBI offices handling Government business and all designated branches of agency banks engaged in government banking will operate their counters during regular working hours on March 30, 2024, and March 31, 2024. Electronic transactions will remain feasible until the specified times on both days.
Banking transactions that can be done on March 30, 31
The specified transactions related to government transactions will be open for over-the-counter processing upto the normal working hours on March 30 and March 31, 2024.
NEFT, RTGS
Transactions conducted through the National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) System will persist until midnight at 2400 hours, as previously practiced, on March 31, 2024.
Cheque clearing
Agency Banks are hereby advised that all cheques associated with Government accounts may be presented during such clearing sessions. Note that the timing for presentation and return clearing of instruments for these special clearing sessions for government cheques will be intimated in due course.
Agency banks are entitled to agency commission for conducting various government transactions, including revenue receipts and payments for both Central and State Governments, pension disbursements on behalf of government employees, management of schemes such as the 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. Additionally, any other tasks specified by the Reserve Bank of India (RBI) as eligible for agency commission, such as transactions related to Relief Bonds or Savings Bonds, are also included.
What is an agency bank
“A network comprising the Government Banking Divisions of RBI and branches of agency banks appointed under Section 45 of the RBI Act carry out the government transactions. At present all the public sector banks and select private sector banks act as RBI’s agents. Only designated branches of agency banks can conduct government banking business,” As per RBI’s website.
Agency banks are those that have been authorised to handle government receipts and payments. According to data published on the RBI website on December 7, 2023, there are a total of 33 agency banks. This list includes 12 state banks and 20 private sector banks. Furthermore, DBS Bank India Limited is the lone foreign bank in this arrangement.
Check the full list of agency banks in the country:
- Central Bank of India
- Bank of India (BOI)
- Bank of Baroda (BOB)
- Bank of Maharashtra
- UCO Bank
- Union Bank of India
- HDFC Bank Limited
- ICICI Bank Limited
- Jammu and Kashmir Bank Limited
- Karnataka Bank Limited
- Canara Bank
- Indian Bank
- Indian Overseas Bank (IOB)
- Punjab and Sind Bank (PSB)
- Punjab National Bank (PNB)
- State Bank of India (SBI)
- Axis Bank Limited
- City Union Bank Limited
- DCB Bank Limite
- Federal Bank Limited
- IDBI Bank Limited
- IDFC FIRST Bank Limited
- IndusInd Bank Limited
- Karur Vysya Bank Limited
- Kotak Mahindra Bank Limited
- RBL Bank Limited
- South Indian Bank Limited
- Yes Bank Limited
- Dhanlaxmi Bank Limited
- Bandhan Bank Limited
- CSB Bank Limited