CSB Bank as an agency bank of RBI is now authorized to enter into an agreement with individual State Governments and Central Government Departments for business like tax collection, pension payment, collection of stamp duty etc.
RBI gave big responsibility to this bank
Private sector lender CSB Bank on Tuesday said it has been listed by the Reserve Bank of India (RBI) as an ‘agency bank’ for carrying on the normal banking business of the central and state governments. The appointment will allow CSB Bank to carry on the normal banking business of the Central and State Governments, as may be assigned by the RBI, the bank said in a statement. The bank said, CSB Bank as an agency bank of RBI is now authorized to enter into an agreement with individual State Governments and Central Government Departments for business like tax collection, pension payment, collection of stamp duty etc.
The bank further said, it allows CSB Bank to undertake a wide range of transactions relating to government business such as Tax Deduction at Source (TDS), Goods and Services Tax (GST), Stamp Duty, Registration, Wealth Tax, Value Added Tax and Professional Tax etc. Can manage
Bank has 562 branches across the country
CSB Bank Head (Retail Banking) Narendra Dixit said, “This is a great opportunity for us to offer our services to different government departments. With our extensive network of 562 branches across the country, this placement will ease government related payment services and the routes between our customers.
Dixit said that this facility will provide an efficient route for the customers of the bank to make payments to the government from their existing account in CSB Bank.
The south-based private sector bank said it is expanding its business by adding new product lines and expanding its distribution channel through physical and digital channels. CSB Bank said that more than 85 percent of the transactions in the bank are done through digital mode.
The government had removed this restriction from private banks
Let us tell you that in February this year, the Finance Ministry had announced the removal of restrictions imposed in September 2012 on allocation of government business to private sector banks. Its information was given to RBI. According to the new guidelines issued by RBI, scheduled private banks can participate in government business after agreement with RBI, but those banks which are in the PCA (Prompt Corrective Action) of RBI will not be allowed to do so.