The Reserve Bank of India (RBI) has authorised private sector lender Bandhan Bank as its agency bank for undertaking government businesses. The appointment would allow the Kolkata-based lender to undertake government businesses 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, the lender said in a release on Monday.
As an agency bank of the RBI, authorised to undertake government business, the bank will be able to handle transactions related to collection of state taxes and revenue receipts such as the GST and VAT; collection of stamp duty and pension payments on behalf of the central and state governments.
“The bank’s extensive 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,” the release said.
“Since its launch six years ago, Bandhan Bank has been dedicated towards bringing millions of Indians into the fold of formal financial services and catalysing the creation of sustainable livelihoods. The RBI’s decision to authorise 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. Bandhan Bank enjoys the trust of over 2.4 crore customers, and now, we have the opportunity to serve the government with our banking services. We are indeed grateful for this opportunity,” said Chandra Shekhar Ghosh, managing director and chief executive officer.