The first IndusInd, now RBL, will change the status of the agency bank and the way it works

In the last few days, two private sector banks – IndusInd and RBL – have been given ‘Reserve Bank’ status by the Reserve Bank of India (RBI). After this, the way these banks work is now changing.

How the Method Changes: In fact, both these banks are now able to act as the agency bank for the banking transactions of the central and state governments. Under this, banks will be able to handle subsidy distribution, pension payments, income tax, excise duty, customs duty, GST, stamp duty etc. In addition, banks will be able to continue to collect central and state taxes, including registration, state excise duty (VAT) and professional tax.

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Explain that this accreditation was issued following the RBI’s new guidelines. The RBI had also asked for guidelines to authorize private sector banks as agency banks to do government business. Meanwhile, RBL Bank said that with this recognition, it will give government departments and enterprises the opportunity to offer best-in-class technology-based platforms and digital products.

RBL Bank is at a loss: Recently released results show that RBL Bank reported a loss of Rs 459.47 crore in the April-June quarter of the current financial year. The bank has suffered a loss due to the increase in the provision, focusing on the possibility of getting caught in the future. The bank had posted a net profit of Rs 141 crore in the same quarter a year ago.

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