PSU banks asked to complete fund transfer transaction in a day

The Reserve Bank of India (RBI) today said that public sector banks will have to make transfer of funds to government account in case of e-payment within one day of the transaction from next month.

This decision was taken after a review carried under Controller General of Accounts (CGA).

"The committee (constituted by CGA) recommended that the remittance norm of T+1 working day ... For e-payment as applicable for private sector banks may also be made applicable for the public sector banks," the RBI said in a notification.

The new norm will come into effect from November 1.

According to existing rules, formulated in 2008, all government transactions, in form of e-payment, has a permissible time period of two days after the date of transaction.