RBI Advises Agency Banks to Keep Government Business Branches Open on March 31

In a recent announcement, the Reserve Bank of India (RBI) has advised agency banks to keep all their branches dealing with government business open on March 31, despite it being a Sunday. This decision comes in response to a request from the Government of India to ensure the smooth recording of all fiscal year 2023-24 transactions.

Typically, banks in India remain closed on all Sundays and the 2nd and 4th Saturdays of each month. However, recognizing the importance of timely government transactions, especially as the fiscal year comes to a close, the RBI has urged agency banks to make an exception for March 31.

Agency Banks:

Agency banks play a crucial role in conducting the general banking business of both the Central and State Governments. These banks act as intermediaries, facilitating various financial transactions on behalf of the government. The list of agency banks includes a mix of scheduled public sector banks, private sector banks, and foreign banks.

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

Scheduled Private Sector Banks:

1. Axis Bank Ltd
2. City Union Bank Ltd.
3. DCB Bank Ltd.
4. Federal Bank Ltd.
5. HDFC Bank Ltd.
6. ICICI Bank Ltd.
7. IDBI Bank Ltd.
8. IDFC FIRST Bank Ltd.
9. IndusInd Bank Ltd.
10. Jammu and Kashmir Bank Ltd. (Approved for limited agency business)
11. Karnataka Bank Ltd.
12. Karur Vysya Bank Ltd.
13. Kotak Mahindra Bank Ltd.
14. RBL Bank Ltd.
15. South Indian Bank Ltd.
16. Yes Bank Ltd.
17. Dhanlaxmi Bank Ltd.
18. Bandhan Bank Ltd.
19. CSB Bank Ltd.
20. Tamilnadu Mercantile Bank Ltd.

Foreign Banks:

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

By keeping these branches open on March 31, agency banks aim to ensure the timely processing and recording of government-related financial transactions, thereby contributing to the smooth functioning of fiscal operations.