The Reserve Bank of India (RBI) on Wednesday said banks need not remain open on April 1, as against its earlier order, because it may affect the annual closing, especially in view of the State Bank of India (SBI) merger.
"In consultation with the government, it has 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," the RBI said in a statement.
Earlier an RBI circular dated March 25, 2017 stated that all payment systems including RTGS and NEFT would operate as on a normal working day during the period March 25 to April 1, 2017 (including Saturday, Sunday and all holidays).
However, on reconsideration, the RBI has been decided that all payment systems will remain closed on April 1, 2017. A separate broadcast message in this regard will be issued through the respective system to the member banks
"It has been represented that the opening of bank branches on April 1, may disrupt the annual closing, especially in view of merger of some banks taking effect from that date," the statement said.
SBI merger with its five associate banks and Bharatiya Mahila Bank will come into effect from April 1.