RBI empanels Karnataka Bank as ‘Agency Bank’ for government transactions

Reserve Bank of India (RBI)

Banking regulator the Reserve Bank of India (RBI) has empanelled the Karnataka Bank is as an ‘Agency Bank’, that will facilitate transactions related to the government businesses.

In a media address the lender said that as an empanelled ‘Agency Bank’, Karnataka Bank has now been authorised to undertake the government businesses namely revenue receipts and payments on behalf of the Central/State governments, pension payments pertaining to Central/State governments, collection of stamp duty charges, as well as some other tasks advised by RBI.

Mahabaleshwara MS, Managing Director and Chief Executive Officer, Karnataka Bank said, “We are privileged to be appointed by the regulator to facilitate transactions pertaining to all kinds of Government-led businesses. With pan-India presence, driven by strong and robust technology and digital platforms, we are confident of being the best choice for the Central and State governments in providing the best possible financial solutions in the most seamless manner. Further, with this arrangement, a level-playing field is being ensured and it will augur well in developing a ‘cost-lite’ liability portfolio for the bank.”

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