RBI Directs Agency Banks To Remain Open On Sunday, March 31; Here’s Why

In compliance with a directive issued by the Reserve Bank of India (RBI), banks across India are mandated to keep their branches handling government transactions open on the final day of the fiscal year, March 31. Despite this day falling on a Sunday this year, all branches dealing with government payments and receipts are required to operate, as stated by the central bank. This initiative aims to ensure the timely processing of all government-related financial activities for the fiscal year 2023–2024.

The RBI, in its notification on Wednesday, conveyed the Government of India’s request to keep all relevant bank branches open on March 31, 2024. This decision facilitates the accurate accounting of government transactions within the specified fiscal period. Therefore, Agency Banks, including public-sector banks like Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Indian Bank, and Indian Overseas Bank, as well as private banks such as Axis Bank Ltd, City Union Bank Ltd, DCB Bank Ltd, Federal Bank Ltd, HDFC Bank Ltd, and ICICI Bank Ltd, are advised to ensure the operational readiness of their branches handling government business on this day.

The move comes after the Income Tax Department announced the cancellation of the extended weekend from March 29 to March 31, citing pending tax-related obligations. Notably, March 29 is observed as Good Friday, followed by March 30, a Saturday, and March 31, a Sunday. Consequently, all Income Tax Offices throughout India will be operational during this period to fulfill their duties.

In other financial spheres, RBI Governor Shaktikanta Das held discussions with Finance Minister Nirmala Sitharaman in preparation for the forthcoming meeting of the central bank’s interest rate-setting panel. Additionally, the minister convened a separate meeting with SEBI Chairperson Madhabi Puri Buch at her office in North Block, signaling collaborative efforts in financial regulation and policy.

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