RBI Directs Agency Banks to Operate on March 31 for Government Transactions

The Reserve Bank of India (RBI) has issued a directive for agency banks to remain operational on March 31, traditionally a non-working day, to facilitate the completion of government transactions for the fiscal year ending 2023-24.

This exceptional measure is in response to a request from the Government of India, ensuring that all government-related financial activities are accounted for within the current fiscal year. The RBI's mandate applies to all agency banks that handle government business, ensuring that receipts and payments are processed without delay.

Agency banks, which include a mix of public sector, private sector, and foreign banks, serve as an extension of the RBI, conducting banking operations for central and state government entities. This network of banks includes prominent names such as State Bank of India, Punjab National Bank, ICICI Bank Ltd., and DBS Bank India Limited, among others.

The move to keep bank branches open on a Sunday underscores the importance of a smooth transition into the new financial year, emphasizing the critical role these institutions play in maintaining the country's fiscal discipline.

List of Agency banks

Scheduled Public Sector Banks (post-amalgamation):

1. Bank of Baroda

2. Bank of India

3. Bank of Maharashtra

4. Canara Bank

5. Central Bank of India

6. Indian Bank

7. Indian Overseas Bank

8. Punjab and Sind Bank

9. Punjab National Bank

10. State Bank of India

11. UCO Bank

12. Union Bank of India

13. Axis Bank Ltd.

14. City Union Bank Ltd.

15. DCB Bank Ltd.

16. Federal Bank Ltd.

17. HDFC Bank Ltd.

18. ICICI Bank Ltd.

19. IDBI Bank Ltd.

20. IDFC FIRST Bank Ltd.

21. IndusInd Bank Ltd.

22. Jammu and Kashmir Bank Ltd. (Approved for limited agency business)

23. Karnataka Bank Ltd.

24. Karur Vysya Bank Ltd.

25. Kotak Mahindra Bank Ltd.

26. RBL Bank Ltd.

27. South Indian Bank Ltd.

28. Yes Bank Ltd.

29. Dhanlaxmi Bank Ltd.

30. Bandhan Bank Ltd.

31. CSB Bank Ltd.

32. Tamilnad Mercantile Bank Ltd.

Foreign Banks:

33. DBS Bank India Limited (Scheduled foreign bank issued license by RBI for carrying on banking business in India through Wholly Owned Subsidiary mode).