RBI Authorises IndusInd Bank to act as an ‘Agency Bank’
- The IndusInd Bank has been empanelled by the Reserve Bank of India (RBI) to act as an ‘Agency Bank’.
- As an Agency Bank, IndusInd becomes eligible to carry out transactions related to all kinds of government led businesses.
- This decision is based on RBI guideline that authorises scheduled private sector banks as agency banks of the regulator for the conduct of government business.
- IndusInd Bank now joins few other private banks of the country listed as Agency Bank of RBI, to carry out general banking business on behalf of the central and state government, apart from offering its customers the convenience of undertaking routine financial transactions through its banking platform.
- As an empanelled ‘Agency Bank’, IndusInd Bank can perform certain transactions such as:
- handle transactions pertaining to revenue receipts under CBDT, CCBIC and GST on behalf of the state/central government.
- make transactions for pension payments on behalf of state/central government
- work related to Small Savings Schemes (SSS)
- collection of stamp duty charges, and collection of stamp duty from citizens for franking of documents.
- undertake collection of state taxes such as professional tax, VAT, state excise etc. on behalf of various state governments, among other things.
Source: Business Standard
Points to remember:
- IndusInd bank has been empanelled by which organisation as Agency Bank? RBI