Private sector lender IndusInd Bank has been empanelled by the Reserve Bank of India (RBI) as an ‘Agency Bank’ to facilitate transactions related to government businesses.
It can now be authorised to handle transactions related to government businesses such as income tax, indirect taxes and goods and services tax payments, pension payments, work related to small savings schemes, collection of stamp duty charges, collection of stamp duty from citizens for franking of documents and also collection of State taxes such as professional tax, value-added tax and State excise duties.
“Given IndusInd Bank’s exclusive suite of services comprising innovative and cost-effective solutions, coupled with our state-of-the-art technology platforms, we are confident of being a ‘partner of choice’ for the government, its enterprises, as well as stakeholders in fulfilling their financial aspirations in a seamless manner,” said Soumitra Sen, Head – Consumer Bank, IndusInd Bank.
Also read: IndusInd Bank net profit surges 111.7% in Q1
Finance Minister Nirmala Sitharaman had on February 24 this year announced that the embargo on grant of government business to private banks has been lifted.
The RBI had then notified guidelines for the appointment of scheduled private sector banks as agency banks.
This was seen as a significant benefit for mid and small-sized private sector lenders as earlier only the three large private sector banks apart from public sector banks were permitted to do government business such as deposits, public provident fund and Sukanya Samriddhi accounts, tax payments and pension payments, amongst other initiatives.