The Reserve Bank of India (RBI) has authorised Bandhan Bank as an Agency Bank of the RBI for undertaking Government business.
The appointment would allow Bandhan Bank to undertake Government business on behalf of the RBI. With this, Bandhan Bank joins ranks with a few other scheduled private sector banks to be empanelled as Agency Banks of the RBI.
What can the bank do as RBI Agency Bank
As an Agency Bank of the RBI, authorised to undertake government business, Bandhan Bank will be able to handle transactions related to collection of state taxes and revenue receipts such as GST and VAT; collection of stamp duty and pension payments on behalf of central and state governments.
The Bank’s branch network, especially in rural and semi-urban areas; state-of-the art products and services; and digital banking capabilities, will help it discharge its duties effectively by bringing governments and citizens closer to each other, it said in a press release.
“The RBI’s decision to authorise Bandhan Bank to undertake Government business as an Agency Bank will further help us contribute to nation-building...Now, we have the opportunity to serve the government with our banking services,” said Chandra Shekhar Ghosh, Managing Director and Chief Executive Officer, Bandhan Bank.
