The Reserve Financial institution of India (RBI) has authorised Bandhan Financial institution as an company financial institution for enterprise authorities enterprise. With this, the financial institution joins ranks with a number of different scheduled personal sector banks to be empanelled as company banks of the RBI.
The announcement comes shut on the heels of a RBI guideline earlier in Might this 12 months that authorises scheduled personal sector banks as company banks of the regulator for the conduct of presidency enterprise.
The rules had been revised by the Central financial institution following the lifting of embargo put in place by Division of Monetary Providers, Ministry of Finance in 2012 on additional allocation of presidency enterprise to personal sector banks by a communication dated February 24, 2021.
Deal with transactions
As an company financial institution of the RBI, Bandhan Financial institution will be capable to deal with transactions associated to assortment of State taxes and income receipts comparable to GST and VAT, assortment of stamp obligation and pension funds on behalf of the Central and the State governments.
The financial institution’s intensive department community, particularly in rural and semi-urban areas, and its digital banking capabilities would assist deliver governments and residents nearer to one another, the financial institution mentioned in a press assertion.
“The RBI’s determination will additional assist us contribute to nation-building and we thank the RBI for this approval. Bandhan Financial institution enjoys the belief of over 2.4 crore clients. We now have the chance to serve the federal government with our banking companies,” Chandra Shekhar Ghosh, MD & CEO, Bandhan Financial institution mentioned within the assertion.