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Introduction: The Reserve Bank of India (RBI) has issued a circular, CO.DPSS.RPPD.No.S1193/03-01-002/2023-2024, dated March 27, 2024, addressed to all Scheduled Commercial Banks, Regional Rural Banks, Urban Co-operative Banks, and other financial institutions regarding Special Clearing Operations scheduled for March 30 and 31, 2024.

Detailed Analysis:

The circular highlights the need for special measures to facilitate the timely accounting of all government transactions for the current financial year (2023-24). To achieve this, the RBI has mandated special clearing operations under the Cheque Truncation System (CTS) exclusively for government cheques on March 30 and 31, 2024.

On March 30, 2024 (Saturday), the presentation session for special clearing will be conducted from 17:00 to 17:30 Hours, followed by the return session from 19:00 to 19:30 Hours. Similarly, on March 31, 2024 (Sunday), the presentation and return sessions will be held during the same time slots.

All banks, including Scheduled Commercial Banks, Regional Rural Banks, Urban Co-operative Banks, and others, are required to participate in the special clearing operations on the specified dates. Additionally, member banks of CTS must ensure that their inward clearing processing infrastructure remains open during the special clearing hours. It is also essential for banks to maintain sufficient balance in their clearing settlement accounts to meet settlement obligations arising from the special clearing.

The circular emphasizes adherence to the instructions provided and urges banks to follow the guidelines issued by the President of the National Grid Clearing House. Furthermore, banks are advised to refer to the circular NPCI/2016-17/CTS/Circular No.32 dated October 3, 2016, issued by the National Payments Corporation of India (NPCI), regarding clearing types for instruments presented during special clearing sessions.

Conclusion: The RBI’s circular regarding special clearing operations on March 30 and 31, 2024, underscores the importance of timely financial year-end transactions, particularly concerning government accounts. By mandating special clearing exclusively for government cheques and issuing instructions for banks’ participation and adherence, the RBI aims to ensure smooth and efficient processing of transactions during this critical period. It is imperative for all banking institutions to comply with the directives outlined in the circular to facilitate seamless operations and uphold the integrity of financial systems.

***

Reserve Bank of India

Special Clearing Operations on March 30 & 31, 2024

RBI/2023-24/141
CO.DPSS.RPPD.No.S1193/03-01-002/2023-2024

March 27, 2024

The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including Regional Rural Banks /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks / Local Area Banks / Payment Banks /
Small Finance Banks / National Payments Corporation of India

Madam / Dear Sir,

Special Clearing Operations on March 30 & 31, 2024

A reference is invited to the circular issued by Department of Government and Bank Accounts (DGBA) vide CO.DGBA.GBD.No.S1252/42-01-029/2023-2024 dated March 22, 2024 addressed to all the agency banks on Annual Closing of Government Accounts –Transactions of Central/State Governments – Special Measures for the Current Financial Year (2023-24).

Normal clearing timings under Cheque Truncation System (CTS) as applicable to any working “Saturday” shall be followed on March 30, 2024. Further, to facilitate accounting of all the Government transactions for the current financial year (2023-24) by March 31, 2024, it has been decided to conduct Special Clearing under CTS exclusively for Government Cheques on March 30 & 31, 2024 as detailed below:

Date Presentation Session Return Session
March 30, 2024 (Saturday) 17:00 Hours to 17:30 Hours 19:00 Hours to 19:30 Hours
March 31, 2024 (Sunday) 17:00 Hours to 17:30 Hours 19:00 Hours to 19:30 Hours

It is mandatory for all banks to participate in the special clearing operations on March 30 & 31, 2024. All the member banks of CTS are also required to 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 Special Clearing.

Member banks are advised to adhere to the instructions contained in this circular as well as instructions issued by the President of the National Grid Clearing House. Member banks may also be guided by the circular NPCI/2016-17/CTS/Circular No.32 dated October 3, 2016 issued by NPCI regarding clearing type for instruments to be presented in Special Clearing sessions.

Yours faithfully,

(Sudhanshu Prasad)
Chief General Manager

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