RBI directs banks to participate in special clearing operations on March 31

Mumbai: The Reserve Bank of India (RBI) said it has directed all banks to participate in special clearing operations on March 31 with a view to clear all government accounts. The central bank, in a notification, said special clearing will be conducted at all clearing houses across the country on March 31 to facilitate accounting of all government transactions for the current financial year 2017-18 which ends on Saturday (March 31).

According to the RBI notification issued late on Wednesday, in addition to normal clearing as followed on any working Saturday, "special clearing" will be held exclusively for government transactions (receipts and payments) with return clearing on the same day.

"It is mandatory for all banks to participate in the special clearing operations on the above-specified date.

"All member banks of the clearing houses are 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," the central bank said.

The RBI has also advised member banks "to be in readiness to participate in the Centralised Payment Systems (RTGS and NEFT) on March 31, 2018."

For Cheque Truncation System (CTS) grid locations in New Delhi, Mumbai and Chennai, special presentation clearing will take place between 8 and 8.30 pm, P2F session timings for the instruments presented through the special clearing between 9 and 9.30 pm, and return clearing for the instruments presented through the special clearing between 10 and 10.15 pm, the notification said.

The RBI said for special clearing in non-MICR (Express Cheque Clearing System) clearing houses, presentation clearing will be one hour after the extended business hours, while return clearing will be half an hour/one hour after the presentation clearing.