Legal UpdatesRBI

RBI takes measures to restrict agency banks from delaying in the reporting of Govt. transactions

RBI updates

RBI outlines the conditions for agency banks in case of the delay in reporting the transactions. RBI instructs the agency bank that in cases where Central Government transactions (electronic as well as in physical mode), are reported after the gap of 90 days from the date of transaction, then the agency banks are required to obtain prior approval from concerned ministry/department thereafter submit the same to RBI separately at the time of reporting such transactions for settlement.

Thereafter, in respect to the State government transactions (electronic as well as in physical mode) RBI directs that the transactions of previous month reported after 8th of the succeeding month and those pertaining to earlier months should be reported to RBI through a separate statement for accounting, after being confirmed by the competent authorities of concerned state government.

RBI has taken the following actions after observing considerable delay by the agency bank in reporting government transactions along with current transaction to RBI, without taking necessary authorisation from the concerned government departments.

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