RBI empanells CSB Bank to undertake banking biz of central, state govts
Private sector lender CSB Bank on Tuesday said it has been empanelled as
an ‘agency bank’ by the Reserve Bank of India (RBI) to undertake general
banking business of central and state governments.
This appointment will allow CSB Bank to undertake general banking
business of the central and state governments which may be entrusted by
the RBI, the bank said in a statement.
“As an agency bank of the RBI, CSB Bank is now authorised to enter into
an agreement with different state governments and central government
departments for businesses such as tax collections, pension payment,
collection of stamp duty, etc.,” the bank said.
It will also enable CSB Bank to handle a broad range of transactions
related to government business, such as tax deducted at source (TDS),
goods and services tax (GST), stamp duty, registration, property tax,
value-added tax and professional tax, it said further.
Narendra Dixit, head (retail banking) at CSB Bank, said, “This is a good
opportunity for us to offer our services to different government
departments. With our extensive network of 562 branches across the
country, this appointment will ease the routes between
government-related payment services and our customers.”
This facility shall provide the bank’s customers with an efficient path
to conduct payments to the government from their existing account with
CSB Bank, Dixit added.
The south-based private sector bank said it has been expanding its
business by adding new product lines and increasing the distribution
channel through physical and digital channels.
Over 85 per cent of the transactions in the bank are conducted through
the digital mode, CSB Bank said.