Planning Bank Transfer On March 31? Here's Why It May Not Work

If you have a vital bank transfer planned for March 31, you may be forced to change your plans. Even though banks will be open for business, priority transactions such as fund transfers, cash deposits, and withdrawals may not be processed on this day. Being the end date of the financial year, the banking operations will be impacted by shutdowns of systems, compliance procedures, and reconciliation activities.

What Happens on March 31?

On March 31, 2025, the financial year 2024-25 ends and therefore is an important date for individuals and companies. Although banking operations will be available to some extent, there will be some transactions that are not executed. Banks do this because they close year-end accounts, perform system maintenance, and balance books on this day.

Even if there are facilities of branches, the customers would notice that particular transactions such as RTGS (Real-Time Gross Settlement), NEFT (National Electronic Funds Transfer), cash withdrawals, and a cash deposit are inhibited. This would cause delays in financial transactions and bring inconvenience to individuals and firms on the basis of timely transfers of funds. 

Which Transactions Will Be Impacted?

Since it is the financial year-end exercise, there can be disruptions to some of the banking operations. Below are some of the important services that may be affected:

• Fund Transfers: On March 31, RTGS and NEFT payments may not be completed. To avoid delays, people with high-value fund transfer plans must make sure these tasks are completed by March 29. 

• Cash Deposits and Withdrawals: Reconciliation processes allow banks to hold cash transactions such as deposits and withdrawals.

• Salary and Vendor Payments: Payroll and vendor payments should be made earlier by businesses so that suppliers and employees can receive their money on time.

• Tax Payments: GST or income tax filers who are yet to file and doing this closer to the end of the quarter, should complete this by March 29 so they are not penalised or non-compliant.

Why You Should Plan in Advance

As March 31st is not a day for financial processing, payment delays in processing may lead to any one of the following. When an EMI, bill payment, or credit card settlement matures on this day, not settling it in advance will attract late payments or penalties. Likewise, companies not settling payroll and vendor settlements before cut-off will have delays.

For investors as well, March 31 is the end of tax-saving season. Most investors make last-minute calls to mutual funds, ELSS (Equity-Linked Savings Scheme), or other tax-saving schemes. Unless there are restrictions on banking transactions, they will forego tax benefits for the financial year.

Alternative Banking Options

While regular banking activities could be curtailed, internet banking activities like UPI (Unified Payments Interface), IMPS (Immediate Payment Service), and mobile banking will still be operational. Customers can utilise these facilities for routine transactions like bill payments and low-value fund transfers. But it is always better to directly inquire from respective banks as to what is feasible.

How to Avoid Last-Minute Stress

To enable a smooth transition into the new financial year, individuals and companies need to do the following beforehand:

• Individuals need to pay their EMIs, credit card dues, and electricity bills by March 29.

• Companies need to undertake the payroll processing, vendor payment, and tax filing beforehand.

• Investors need to undertake any last-minute rebalancing of portfolios before the end of the financial year.

Through pre-planning and closing necessary transactions prior to March 29, organisations and individuals can prevent unwarranted delays and disruptions. March 30 is a Sunday and March 31 is reserved for financial reconciliation, proactive planning will result in a smooth financial year-end.

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