Agency Banks to Remain Open on March 3 for Financial Transactions

In an official communication, the Government of India has instructed all banks branches handling government receipts and payments to remain operational on March 3, ensuring comprehensive accounting of fiscal transactions for the fiscal year 2023–2024. 

This directive, published by the Reserve Bank of India (RBI), highlights the significance of agency banks in facilitating government banking operations on this designated Sunday.

Understanding Agency Banks and their Role in Government Transactions:

Agency banks play a pivotal role in executing government transactions, acting as intermediaries between government entities and the Reserve Bank of India (RBI). 

Designated branches of agency banks are authorized to conduct various government banking activities, including handling receipts and payments. 

These banks are appointed under Section 45 of the RBI Act and comprise public sector banks, as well as select private sector banks, acting as agents of the RBI.

RBI’s Call for Publicity and Awareness:

In addition to mandating the operational status of agency banks on March 3, the RBI has urged banks to disseminate information regarding the availability of banking services on this day. 

Through effective publicity measures, banks are tasked with ensuring that customers are informed about the accessibility of financial services provided by banks, facilitating seamless transactions for government-related activities.

Comprehensive List of Agency Banks in India:

The RBI has enumerated 33 banks authorized to execute government transactions pertaining to receipts and payments. 

This comprehensive list includes prominent public sector banks such as State Bank of India, Punjab National Bank, and Bank of Baroda, along with select private sector banks like HDFC Bank, ICICI Bank, and Axis Bank. Each of these banks plays a crucial role in supporting government financial operations across the country.

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