Fri. Mar 29th, 2024
Bandhan Bank

The Reserve Bank of India (RBI) has approved Bandhan Bank as an “agency bank” for undertaking business of the government. With this, the bank joins the handful of scheduled private sector banks that have been selected as agency banks of the RBI.

The announcement comes after the earlier issued guidelines of RBI in May this year that allows scheduled private sector banks as agency banks of the apex bank and undertake government business.

Through a notification dated February 24, 2021, the RBI changed the guidelines after the Department of Financial Services, Ministry of Finance, lifted an embargo imposed in 2012 on the future award of government business to private sector banks.

Bandhan Bank will now have the permission to conduct transactions linked to state taxes and revenue receipts like GST and VAT, stamp duty collection, and pension payments on behalf of the Central and State governments as an RBI agency bank.

The bank’s extensive bank network, spread through rural and semi-urban areas, and its digital banking capabilities would bridge the gap between governments and citizens.

“The RBI’s decision will further help us contribute to nation-building and we thank the RBI for this approval. Bandhan Bank enjoys the trust of over 2.4 crore customers. We now have the opportunity to serve the government with our banking services,” Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank said in the statement.

By Harshita Sharma

I bring to you updates from business, policy and economy spectrum.

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