IndusInd Bank on Tuesday said it has been empanelled by the Reserve Bank of India (RBI) to act as an 'Agency Bank' to facilitate transactions related to government businesses.
It will strengthen the bank's presence within the government domain, IndusInd Bank said.
The announcement comes close on the heels of a recent RBI guideline that authorises scheduled private sector banks as agency banks of the regulator for the conduct of government business.
With this, IndusInd Bank joins ranks with few other private banks of the country to carry out general banking business on behalf of the central and state government, while also offering customers - the convenience of undertaking routine financial transactions through its banking platform, the bank said in a release.
"We are honoured to be appointed by the RBI to facilitate transactions pertaining to all kinds of government led businesses.
"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 all other stakeholders in fulfilling their financial aspirations in the most seamless manner," said Soumitra Sen, Head – Consumer Bank, IndusInd Bank.
As an empanelled 'Agency Bank', IndusInd Bank can now be authorised to handle transactions pertaining to revenue receipts under CBDT, CCBIC and GST on behalf of the state/central government.
It can also make transactions for pension payments on behalf of state/central government, work related to Small Savings Schemes (SSS), collection of stamp duty charges, and collection of stamp duty from citizens for franking of documents.
Besides, it can also undertake collection of state taxes such as professional tax, VAT, state excise etc. on behalf of various state governments, IndusInd Bank said.