The Reserve Bank of India (RBI) has appointed Kolkata based private lender Bandhan Bank as its agency bank for undertaking government business.
The appointment would permit the lender in undertaking government business on behalf of the central bank. With this development, Bandhan Bank now joins the list of a few other scheduled private sector banks that are empanelled as agency banks of the RBI.
As an agency bank of the RBI, authorized to undertake government business, Bandhan Bank is now allowed to handle transactions pertaining to the collection of state taxes and revenue receipts such as goods and services tax (GST) and value-added tax (VAT); collection of stamp duty and pension payments on behalf of central and state governments.
“Since its launch six years ago, Bandhan Bank has been dedicated towards bringing millions of Indians into the fold of formal financial services and catalyzing the creation of sustainable livelihoods. The RBI’s decision to authorize Bandhan Bank to undertake government business as an agency bank will further help us contribute to nation-building; and we thank the RBI for this approval,” said Chandra Shekhar Ghosh, chief executive, Bandhan Bank.