On Tuesday, private sector lender IndusInd Bank announced that it had been appointed as an agency bank by the Reserve Bank of India (RBI) to facilitate transactions relating to government businesses.
The announcement follows a recent RBI guideline authorising scheduled private sector banks to act as the regulator’s agency banks for the conduct of government business.
With this, IndusInd Bank joins a select group of private banks in the country to conduct general banking business on behalf of the Central and state governments, while also providing customers with the convenience of conducting routine financial transactions via its banking platform.
“We are confident of being the ‘partner of choice’ for the government, its enterprises, and all other stakeholders in meeting their financial aspirations in the most seamless manner possible,” said Soumitra Sen, IndusInd Bank’s Head of Consumer Bank.
As an empanelled agency bank, the lender is now authorised to conduct the following transactions:
Revenue receipts under the CBDT, CBIC, and GST on behalf of the state/central government; pension payments on behalf of the state/central government; work associated with small savings schemes; collection of stamp duty charges; collection of stamp duty from citizens for franking of documents; collection of state taxes such as professional tax, VAT, and state excise on behalf of various state governments.
The private sector lender operates 2,015 branches and banking outlets across the country, in addition to 2,872 ATMs. Additionally, the company maintains representative offices in London, Dubai, and Abu Dhabi.
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