The Reserve Bank of India (RBI) has empanelled the IndusInd Bank, the private sector lender, as an ‘Agency Bank’ to facilitate transactions related to government (govt) businesses.
i.Background: In February 2021, RBI has removed the ban imposed (on 2012) over ‘Appointing the Scheduled Private Sector Banks as Agency Banks of RBI’. Further, it revised the guidelines and authorised Scheduled Private Sector Banks as agency banks of RBI for conducting govt (Central and/or State) businesses.
- Earlier public sector banks and larger private banks were only granted by RBI as agency bank.
ii.Now, RBI has allowed IndusInd Bank to handle transactions related to revenue receipts under Central Board of Direct Taxes (CBDT), Central Board of Indirect Taxes and Customs (CBIC) and Goods and Services Tax (GST) on behalf of the state/central govt.
iii.It was also authorised to make transactions such as income tax, indirect taxes, pension payments, work related to Small Savings Schemes (SSS), collection of stamp duty charges, collection of stamp duty from citizens for franking of documents and also collection of State taxes such as professional tax, value-added tax and State excise duties.
iv.On behalf of state govts, it will collect state taxes such as professional tax, VAT (value-added tax), state excise duties, etc.
Note – The agency banks will be paid remuneration by RBI for conduct of State/Central Govt transactions.
RBI Imposed Rs 50.35 lakh Penalty on Janalaxmi Co-operative Bank
i.RBI imposed a monetary penalty of Rs 50.35 lakh on Janalaxmi Co-operative Bank, Nashik, Maharashtra for non-compliance with directions issued by RBI on ‘Placement of Deposits with Other Banks by Primary (Urban) Co-operative Banks’ and ‘Membership of Credit Information Companies (CICs)’.
ii.RBI also imposed Rs 3 lakh penalty on Noida Commercial Co-operative Bank, Ghaziabad, Uttar Pradesh for non-compliance with provisions related to director-related loans and opening of new place of business.
Recent Related News:
The Reserve Bank of India(RBI) has imposed a monetary penalty of Rs.4 crores on Bank of India(BOI) and of Rs.2 crores on Punjab National Bank(PNB).
About IndusInd Bank:
Establishment – 1994
Headquarters – Pune, Maharashtra
MD & CEO – Sumant Kathpalia