The Reserve Bank of India (hereinafter referred to as the ‘RBI’), vide Notification No. DGBA.GBD.1472/31.02.007/2017-18, dated November 30, 2017, has issued a notification with regards to reporting of transactions by agency banks.
Reason for Notification –
The RBI in its notification stated that some agency banks are reporting Government transactions after considerable delay and along with the current transactions to RBI. These transactions are reported without taking necessary authorization from the concerned Government departments.
Instructions notified –
As per the extant instruction, the RBI stated that State Government transactions (electronic as well as physical mode) of previous month reported after the 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.
The RBI gave a decision that for Central Government transactions (electronic as well as physical mode), if the transactions or any adjustments thereof are reported after a gap of 90 days from the date of transaction, agency banks have to obtain prior approval from the concerned Ministry/Department and submit the same to RBI separately at the time of reporting such transactions for settlement.
The above instructions related to the timeline must be adhered to, for reporting of Government transactions and they shall remain unchanged.