RBL Bank on Wednesday said it has been accredited by the RBI to be an agency bank to carry on banking transactions of the central and state governments. RBL Bank has been empanelled by the Reserve Bank of India (RBI) as an agency bank to conduct banking business for the central and state governments, RBL Bank said in a release.
The authorisation will enable RBL Bank to handle a broad range of transactions related to government business.
It will be able to carry on the business of distributing subsidies, pension payments, collecting central and state taxes, including income tax, excise duties, customs, GST, stamp duty, registration, state Excise (VAT) and professional tax. These businesses can be conducted in both online and offline modes.
The accreditation comes on the heels of the RBI’s guideline authorising scheduled private sector banks as agency banks to carry out specific government-related business transactions.
It will allow RBL Bank to offer best-in-class tech-enabled platforms and digital products to government departments and enterprises, thereby making their banking journey convenient and seamless, the lender said.
Parool Seth, Head – FIG, Inclusive FI, MNC and New Economy Client Coverage, RBL Bank, said: " With the RBI’s accreditation, we will be in a position to offer to the centre and the state governments, cost and time-efficient best-in-class products and solutions".