Banks will conduct special clearing operations for annual closure of authorities accounts on March 31, which is the final day of the present fiscal yr, the RBI has mentioned. The Reserve Bank has issued instructions to the banks for easy clearing operation and requested them to mandatorily take part in it.
With regard to annual closing of accounts associated transactions of the central and state governments, special measures are put in place for 2020-21, the RBI has instructed all of the member banks to preserve enough stability of their clearing settlement account.
Normal clearing timings as relevant to any working Wednesday shall be adopted on March 31, 2021, the RBI mentioned in a notification addressed to the member banks, city and state cooperative banks, funds banks, small finance banks in addition to the NPCI.
To facilitate accounting of all the federal government transactions for the present monetary yr 2020-21 by March 31, 2021, it has been determined to conduct special clearing solely for authorities cheques throughout the three CTS grids on March 31, 2021, the RBI mentioned.
Under this, presentation clearing will happen between 1700 to 1730 hrs and return clearing will happen between 1900 and 1930 hrs on the three CTS (cheque truncation system) grids positioned in New Delhi, Chennai and Mumbai.
“It is mandatory for all banks to participate in the special clearing operations on March 31, 2021. All the member banks under the respective CTS grids are required to keep their inward clearing processing infrastructure open during the special clearing hours and maintain sufficient balance in their clearing settlement account to meet settlement obligations arising out of the special clearing,” mentioned the regulator.
Besides, it has requested the banks underneath the respective CTS grids to adhere to the directions issued to them by the President of the respective CTS grid.
Under the CTS system, there isn’t any want to current a cheque bodily for clearance, as a substitute an digital picture is being transmitted to the paying department by the clearing home, with the related information.
This eliminates the price of motion of the bodily cheques and reduces time for assortment and clearance of cheques.
All authorities transactions carried out by company banks for 2020-21 should be accounted for inside the identical monetary yr, the RBI mentioned.
The central financial institution mentioned all company banks ought to preserve their designated branches open for over-the-counter transactions associated to authorities transactions up to the conventional working hours on March 31, 2021.
“Transactions by National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) System will proceed up to 2400 hours as hitherto on March 31, 2021.
“Special clearing will be conducted for collection of government cheques on March 31, 2021 for which the Department of Payment and Settlement Systems (DPSS), RBI will issue necessary instructions,” it mentioned.
With regard to reporting of central and state authorities transactions to RBI, together with importing of GST/e-receipts baggage recordsdata, the reporting window of March 31, 2021 will likely be prolonged and stored open until 1200 hours on April 1, 2021, the RBI mentioned.