Agency Banks To Open This Sunday: Check What It Is, How They Operate & Full List | Economy News

New Delhi: As the current financial year is going to end this weekend, the regulatory authority has issued several directives for the smooth functioning of the government offices. Following suit, the Reserve Bank of India (RBI) has issued a directive regarding the closing and opening of banks.

What RBI Issued?

The banking regulatory authority has directed all agency banks to keep their designated branches open for over-the-counter transactions related to government operations. This requirement applies on March 30 and March 31, 2024, during normal working hours. (Also Read: Sam Bankman-Fried: Once Among America’s Wealthiest, Now Facing 25 Years Behind Bars — Read All About Former Crytpo Mogul)

Reason Behind Directive

According to an RBI notification dated March 20, 2024, the Government of India has requested that all branches dealing with government receipts and payments remain open on March 31, 2024, which falls on a Sunday. (Also Read: Good News For MGNREGA Employees! Centre Announces Pay Hike: Check State-Wise Wages Here)

As per the reports, the Reserve Bank of India’s move is to ensure the timely accounting of all government transactions for the fiscal year 2023-24.

What Are Agency Banks?

Agency banks play a crucial role in facilitating government transactions. These banks are authorized to handle government operations, including receipts and payments. The Reserve Bank of India appoints scheduled commercial banks as its agents to carry out these tasks.

How Agency Banks Operate?

Under Section 45 of the Reserve Bank of India Act, 1934, the RBI appoints scheduled commercial banks as its agents for various purposes, considering factors such as public interest, convenience of banking, and banking development.

These agency banks, both public and private, assist the RBI in conducting government transactions across the country.

List Of Agency Banks

As of May 30, 2023, there were 33 agency banks authorized to handle government operations. This list includes prominent public sector banks such as State Bank of India, Bank of Baroda, and Punjab National Bank, as well as select private sector banks like HDFC Bank, ICICI Bank, and Axis Bank.

However, there are more banks on the list. You can check it on the official website of RBI.

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