Banks to pay fine if they exceed required remit period: RBI

Banks will be liable to pay penalty for failing to remit government fund within the required time frame, the Reserve Bank said Wednesday.

Mumbai: Banks will be liable to pay penalty for failing to remit government fund within the required time frame, the Reserve Bank said Wednesday.

As per the instructions of the Controller General of Accounts, the Ministry of Finance, banks are required to adhere to norms for payment of government revenue through debit or credit cards and net banking, RBI said in a notification.

"Remittance norms of T+1 working day, including the put through date should be strictly followed, where T is the day when money is available with the receiving bank branch," it said.

"Penal interest will be levied on delayed remittances of e-receipt into government account, that is, on delay beyond T+1 working day, if any," it said.

The settlement should conform to the provisions contained in the Payment and Settlement Systems Act 2007 and the rules and regulations framed thereunder, it added.

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