In a bid to ensure the completion of all government transactions for the fiscal year 2023-24, the Reserve Bank of India (RBI) has instructed all agency banks dealing with government business to remain open for public transactions on Sunday, March 31.
According to RBI sources, the decision comes following a request from the Government of India to facilitate the accounting of all government receipts and payments within the current fiscal year itself. As a result, agency banks are directed to keep all their branches engaged in government transactions operational on March 31, 2024.
The list of agency banks includes several public-sector banks such as Bank of Baroda, Bank of India, Canara Bank, Central Bank of India, and Indian Overseas Bank, among others. Additionally, numerous private banks like Axis Bank Ltd., HDFC Bank Ltd., and ICICI Bank Ltd. are also designated as agency banks of the RBI.
This move by the RBI aims to ensure accessibility to banking services for the public on the specified day, and banks are urged to widely publicize the availability of their services on March 31.
Meanwhile, RBI Governor Shaktikanta Das recently met with Finance Minister Nirmala Sitharaman to discuss various policy matters ahead of the central bank’s interest rate-setting panel meeting. The discussions come amidst a period of heightened market volatility and industry calls for a reduction in interest rates.
The RBI has maintained the benchmark interest rate, known as the repo rate, at 6.5% since February 2023, and the outcome of the upcoming policy meeting is awaited with anticipation by various stakeholders.
