The Reserve Bank of India (“RBI”), vide Notification No. CO.DGBA.GBD.No.S954/42-01-029/2024-20251 dated February 28, 2025, issued the reporting and accounting of central government transactions for March 2025 (“Circular”).
Reference is drawn to the RBI Circular dated March 13, 2024, which advised the procedure for reporting and accounting of Central Government transactions, including those of the Central Board of Direct Taxes, Central Board of Indirect Taxes and Customs, Departmentalized Ministries, and Non-Civil Ministries at the Receiving/ Nodal/ Focal Point branches of your bank for the Financial Year 2023-24.
The key highlights of the Circular are as follows:
I. Closure of Residual Transactions:
- The Government of India has decided that the date of closure for residual transactions for March 2025 shall be April 10, 2025.
- To facilitate the proper accounting of government transactions for the 2024-25 financial year, receiving branches, including those that are not located locally, shall adopt special arrangements such as courier services for passing on challans, scrolls, etc., to the Nodal/ Focal Point branches. This ensures that the payments and collections made on behalf of the Government towards the end of March are correctly accounted for in the same financial year.
- These instructions regarding special messenger arrangements shall be communicated to all concerned branches.
II. Reporting of Transactions in April 2025:
- The Nodal/ Focal Point branches shall segregate daily all scrolls/ challans related to March 2025 received from the receiving branches. These shall be organized into 2 (two) separate main scrolls:
- for March 2025 or earlier transactions (transactions from the previous financial year 2024-25).
- for current transactions (transactions from April 1, 2025, onwards).
III. Marking of March Residual Transactions:
- For transactions reported between April 1, 2025, to April 10, 2025, the main scrolls for March 2025 transactions shall be distinctly marked as March Residual-1, March Residual-2, and so on.
- The serial numbers shall be assigned in consecutive order for each scroll sent during this period. These scrolls, along with the copies of daily summaries for March 2025 transactions, shall be forwarded to the relevant Departmental Officials (Zonal Accounts Officers, Pay and Accounts Officers, and Designated Officers) in the usual manner.
- The Nodal/ Focal Point branches shall also report these transactions to the Link Cell through separate Daily Memos to ensure that daily settlement with the Reserve Bank of India, Central Accounts Section (CAS) in Nagpur is maintained.
- This procedure shall be followed until April 10, 2025, and shall continue with transactions being reported and accounted for in the usual manner starting from April 11, 2025.
IV. DMS for March and April Transactions:
- The Nodal/ Focal Point branches shall prepare two sets of Daily Monitoring Statements (DMS) for March 2025 transactions:
- for transactions up to March 31, 2025.
- for March Residual transactions adjusted by Nodal/ Focal Point branches during April 1 to April 10, 2025, with Reserve Bank of India, CAS Nagpur.
V. Handling of April Transactions:
- Nodal/ Focal Point branches shall also be reporting April 2025 transactions (for the new financial year 2025-26). The monthly statement for April 2025 transactions shall be compiled and furnished to the Zonal Accounts Officers/ Pay and Accounts Officers in the usual way.
- March Residual Transactions shall be clearly marked as “March Residual Account” to distinguish them from April 2025 transactions.
VI. Cheques Realized on or Before March 31, 2025
- All cheques/ amounts realized on or before March 31, 2025, shall be treated as transactions relating to the current financial year as “March 2025” or “March Residual Transactions”. These shall be reported during April 2025 (up to April 10, 2025).
- However, if a cheque is tendered on or before March 31, 2025, but realized on or after April 1, 2025, it will be treated as an April 2025 transaction, hence a part of the next financial year.
- Separate scrolls must be prepared for March 2025 and April 2025 (financial year 2025-26) transactions.