RBL Bank said on Wednesday that it has been designated as an agency bank by the RBI to handle financial transactions for the federal and state governments. The Reserve Bank of India (RBI) has appointed RBL Bank as an agency bank to handle banking transactions for the national and state governments, according to a press statement. The declaration follows a recent RBI rule for scheduled private sector banks to act as the regulator's Agency Banks for the conduct of government business. The announcement comes in response to a recent RBI rule allowing scheduled private sector banks to function as Agency Banks for the performance of government business. RBL Bank, previously Ratnakar Bank, is a Mumbai-based Indian private sector bank that was formed in 1943. Corporate and institutional banking, commercial banking, branch and business banking, retail assets, development banking and financial inclusion, treasury and financial market operations are among the services it provides.
The authorization will allow RBL Bank to handle a wide range of government-related transactions. It will be able to distribute subsidies, pay pensions, and collect federal and state taxes, such as income tax, excise duties, customs, GST, stamp duty, registration, state excise (VAT), and professional tax. These companies can operate in both online and physical environments. The accreditation comes after the RBI issued a guideline for scheduled private sector banks to serve as agency banks for government-related transactions. It would enable RBL Bank to provide government agencies and businesses with best-in-class tech-enabled platforms and digital solutions, making their banking experience more efficient and smooth, according to the lender.
"With the RBI's certification, we will be able to deliver cost and time-efficient best-in-class goods and solutions to the centre and state governments. By effectively executing our obligations under the RBI's mission, we hope to become the government's preferred option and trusted partner," said Parool Seth, Head – FIG, Inclusive FI, MNC and New Economy Client Coverage, RBL Bank. On the Sensex, RBL Bank finished at Rs. 177.55 per piece, up to Rs. 4.55 or 2.63 percent.
Last week, IndusInd Bank stated that the Reserve Bank of India (RBI) had appointed it as an "Agency Bank" to assist government-related transactions.