RBI asks banks to create special clearing window for govt accounts on March 31

The Reserve Bank of India (RBI) has directed all banks to participate in special clearing operations to be held on March 31 to clear government accounts.

RBI on Thursday said a special clearing will be conducted on March 31, 2018, at all clearing houses across the country to facilitate accounting of all government transactions for the current financial year 2017-18 that ends this month.

Apart from normal clearing, which is followed on any working Saturday (which March 31 is), a special clearing will be held exclusively for government transactions (receipts and payments) with return clearing on the same day.

RBI said it is mandatory for all banks to participate in the special clearing operations and they should keep their inward clearing processing infrastructure open during the special clearing hours and maintain sufficient balance in their clearing settlement account to meet settlement obligations arising out of the process.

“Member banks are also advised to be in readiness to participate in the Centralised Payment Systems (RTGS and NEFT) on March 31, 2018,” RBI said.

For Cheque Truncation System (CTS) grid locations -- New Delhi, Mumbai and Chennai -- special presentation clearing will take place between 8 pm and 8.30 pm; for paper 2 follow (P2F) mode, clearing is scheduled between 9 pm and 9.30 pm; and for return clearing the session, the window is between 10 pm and 10.15 pm.

While for special clearing in non-MICR (Express Cheque Clearing Systems) clearing houses, presentation clearing will be one hour after the extended business hours for return clearing it will be half and hour-one hour after the presentation clearing.