Reserve Bank of India (RBI) on Monday announced the appointment of Bandhan Bank as an Agency Bank of the RBI for undertaking Government business.
“The appointment would allow Bandhan Bank to undertake Government business on behalf of the RBI,” the statement said.
“With this, Bandhan Bank joins ranks with a few other scheduled private sector banks to be empanelled as Agency Banks of the RBI,” the statement added.
As an Agency Bank of the RBI, authorized to undertake government business, Bandhan Bank will be able to handle transactions related to the collection of state taxes and revenue receipts such as GST and VAT; a collection of stamp duty and pension payments on behalf of 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.
Speaking on the appointment, Chandra Shekhar Ghosh, Managing Director & Chief Executive Officer, Bandhan Bank said, “The RBI’s decision to authorize 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,” Gosh added.