RBI tells banks to remain closed on April 1

Bank branches will remain closed on April 1 to allow smooth functioning of annual closing for banks, said the Reserve Bank of India in a revised guideline.Last week, in order to facilitate government receipt and payment functions, the RBI had advised all agency Banks -- public sector and three top private banks -- to keep all their branches dealing with government business open on all days in the current financial year and on April 1, 2017 (including Saturday, Sunday and all holidays), i.e. from March 25 and April 1.

“In this connection, it has been represented that the opening of bank branches on April 1, 2017 may disrupt the annual closing, especially in view of merger of some banks taking effect from that date,” RBI said in its circular on Wednesday.This could be in reference to the merger of State Bank of India (SBI) with its five associate banks.

In consultation with government of India, it has, therefore, been decided that while the agency banks are to keep all their branches dealing with government business open on all days in the current financial year (including Saturday, Sunday and all holidays) as already advised, these branches need not be kept open on April 1, 2017, RBI added.

Complaining about the same, banks unions have written to the Indian Banks’ Association (IBA) saying, “Since only the selected number of agency branches are to be kept open and that too only for undertaking government transactions, a clear announcement is to be made by the banks that all bank branches will not be open on Sundays and holidays and even in the branches to be kept open, it would cater only to specified government transactions and not any other regular banking services.”

In the confusion, normal customers are coming to the branches and demanding regular services to be extended to them.According to the unions, there was no instruction from the banks to the staff as to which branches will remain open and which employees should attend office causing inconvenience to the employees.

In a letter to IBA, AIBOA and AIBEA (All India Bank Officers’ Association and All India Bank Employees' Association) said, “This created so much of confusion and resentment amongst the general employees and officers that RBI is taking the banks and bank staff for granted.  Please convey our strong resentment to RBI in this regard and in future to issue their instructions well in advance.

We believe that RBI knows that March 31 would come every year and if they desire any special banking service during that time, it can be planned well in advance.” They have also demanded clear instructions to be given to all the banks to make payment of overtime wages to the workman employees who are required to attend office on Saturday/Sunday/holidays and also to ensure payment of adequate compensation to the officer staff along with compensatory off.