Banks to conduct special clearing operations for closure of govt accounts

Banks will conduct particular clearing operations for annual closure of presidency accounts on March 31, which is the final day of the present fiscal yr, the RBI has mentioned.

The Reserve Financial institution has issued instructions to the banks for clean 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, particular measures are put in place for 2020-21, the RBI has instructed all of the member banks to take care of enough steadiness of their clearing settlement account.

Regular 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 particular clearing solely for presidency cheques throughout the three CTS grids on March 31, 2021, the RBI mentioned.

Beneath 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 situated in New Delhi, Chennai and Mumbai.

“It’s necessary for all banks to take part within the particular clearing operations on March 31, 2021. All of the member banks beneath the respective CTS grids are required to maintain their inward clearing processing infrastructure open in the course of the particular clearing hours and keep enough steadiness of their clearing settlement account to satisfy settlement obligations arising out of the particular clearing,” mentioned the regulator.

In addition to, it has requested the banks beneath the respective CTS grids to stick to the directions issued to them by the President of the respective CTS grid.

Beneath the CTS system, there is no such thing as a must current a cheque bodily for clearance, as a substitute an digital picture is being transmitted to the paying department by means of the clearing home, with the related knowledge.

This eliminates the price of motion of the bodily cheques and reduces time for assortment and clearance of cheques.

All authorities transactions performed by company banks for 2020-21 have to be accounted for inside the similar monetary yr, the RBI mentioned.

The central financial institution mentioned all company banks ought to hold their designated branches open for over-the-counter transactions associated to authorities transactions as much as the traditional working hours on March 31, 2021.

“Transactions by means of Nationwide Digital Funds Switch (NEFT) and Actual Time Gross Settlement (RTGS) System will proceed as much as 2400 hours as hitherto on March 31, 2021.

“Particular clearing will likely be carried out for assortment of presidency cheques on March 31, 2021 for which the Division of Cost and Settlement Programs (DPSS), RBI will challenge vital directions,” 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.(Solely the headline and movie of this report might have been reworked by the Enterprise Commonplace employees; the remainder of the content material is auto-generated from a syndicated feed.)

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