RBI empanells CSB Bank to undertake central and state government banking business
Private sector lender CSB Bank said on Tuesday that it had been incorporated as an “agency bank” by the Reserve Bank of India (RBI) to undertake the general banking activities of central and state governments.
The appointment will enable CSB Bank to undertake general central and state government banking activities that may be entrusted by the RBI, the bank said in a statement.
“As an agent bank of the RBI, CSB Bank is now authorized to enter into an agreement with different state governments and central government departments for activities such as collection of taxes, payment of pensions, collection of stamp, etc,” the bank said.
It will also enable CSB Bank to handle a wide range of government business related transactions such as withholding tax (TDS), goods and services tax (GST), stamp duty, registration, property tax, value added tax and professional fees. tax, he says further.
Narendra Dixit, Head (Retail Banking) at CSB Bank, said, “This is a good opportunity for us to offer our services to different ministries. With our extensive network of 562 branches across the country, this appointment will facilitate routes between government-related payment services and our customers.”
This facility will provide the bank’s customers with an efficient way to make payments to the government from their existing account with CSB Bank, Dixit added.
The southern-based private sector bank said it was expanding its business by adding new product lines and expanding the distribution channel through physical and digital channels.
More than 85% of the bank’s transactions are done digitally, CSB Bank said.
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