RBI Issues Guidelines for Annual Closing of Government Accounts for FY 2024-25
RBI mandates special measures to ensure timely closing of government accounts for FY 2024-25, preventing delays and ensuring smooth financial reporting
The Reserve Bank of India ( RBI ) has issued special guidelines for the annual closing of government accounts for the financial year 2024-25, ensuring that all transactions are recorded within the financial year. As per the March 17, 2025 notification, all government-related transactions conducted by agency banks must be completed and accounted for by March 31, 2025. To achieve this, RBI...
The Reserve Bank of India ( RBI ) has issued special guidelines for the annual closing of government accounts for the financial year 2024-25, ensuring that all transactions are recorded within the financial year.
As per the March 17, 2025 notification, all government-related transactions conducted by agency banks must be completed and accounted for by March 31, 2025. To achieve this, RBI has instructed agency banks to keep their branches open during normal working hours on the last day of the financial year for government receipts and payments.
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The RBI’s Department of Payment and Settlement Systems (DPSS) will conduct special cheque clearing on March 31, 2025, to process government transactions efficiently. Banks are also required to report and upload government-related transactions, including GST, TIN 2.0, ICEGATE, and State e-receipts, by 12:00 PM on April 1, 2025.
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The RBI has urged banks to publicize these special arrangements to ensure businesses and government institutions are aware of the deadlines. These measures aim to prevent delays and discrepancies in the final accounting of government transactions, ensuring a smooth financial year-end closure.
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Every year, the RBI issues similar guidelines to prevent financial bottlenecks at the end of the fiscal year. In past years, some agencies have faced technical difficulties and banking delays, leading to requests for deadline extensions, which the RBI typically does not grant.
Many other countries also follow strict year-end financial closing procedures:
- In the United States, the federal government’s fiscal year ends on September 30, and agencies must complete expenditures before that date.
- In the United Kingdom, the financial year closes on March 31, similar to India, requiring strict adherence to reporting deadlines.
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