RBI Orders Special Clearing for Government Cheques on 31 March
Why in the news
RBI wants every government transaction booked within FY 2024-25.
Key facts
- The financial year runs 1 April to 31 March; agency banks must account for all government receipts and payments in it.
- Branches handling government business keep over-the-counter services open through normal hours.
- Banks must keep inward clearing open and maintain enough balance for settlement.
- Tax offices remain open despite the weekend and a possible Eid holiday.
Implications
- Banks must adjust liquidity management; year-end accounting stays smooth.
Exam angle
- System: Cheque Truncation System.