RBI Mandates Special Operations to Ensure Timely Government Financial Transactions

The Reserve Bank of India has instructed all banks to partake in special clearing operations by March 31, 2025, to ensure that all government transactions are accounted for within the financial year 2024-25. This includes maintaining open branches and infrastructure during specified hours for effective settlement.

On Friday, the Reserve Bank of India (RBI) issued a directive requiring all banks to engage in special clearing operations on March 31, 2025. This measure ensures the accounting of all government transactions within the financial year 2024-25.

India aligns its financial year from April 1 to March 31. Income tax offices and CGST offices will remain operational from March 29 to 31, despite the intervening weekend and potential Eid-al-Fitr holiday on Monday.

The RBI's circular highlighted that agency banks must remain open, utilizing regular working hours for government-related transactions. Special clearing operations under the Cheque Truncation System will be implemented, mandating bank participation from 5:00 PM to 5:30 PM, with return sessions from 7:00 PM to 7:30 PM.

(With inputs from agencies.)