RBI empanelled Bandhan Bank as its agency Bank

The Reserve Bank of India (RBI) has authorized private lender Bandhan Bank as its agency bank for undertaking government business.

According to Bandhan Bank’s MD and CEO Chandra Sekhar Ghosh, the RBI’s decision will assist the bank in contributing to nation-building.

The news comes months after the Reserve Bank of India issued a guideline authorising scheduled private sector banks to act as the regulator’s agency banks for the conduct of government business.

With this, Bandhan Bank joins a select group of scheduled private sector banks that have been appointed as RBI agency banks, according to a statement from the bank.

As an agency bank, Bandhan Bank would be able to handle transactions on behalf of the central and state governments, including the collection of state taxes and revenue receipts such as GST and VAT, stamp duty collection, and pension payments.

The bank’s broad branch network will aid it in fulfilling its responsibilities by bringing governments and citizens closer together, according to the statement.

“Bandhan Bank has been dedicated to bringing millions of Indians into the fold of formal financial services and catalysing the construction of sustainable livelihoods since its launch six years ago,” Ghosh added.