The Reserve Bank of India (RBI) has designated private sector lender Bandhan Bank as an agency bank for government contracts. The designation will allow the Kolkata-based institution to handle government contracts on behalf of the Reserve Bank of India. With this, Bandhan Bank joins a select group of scheduled private sector banks that have been appointed as RBI agency banks, the lender announced on Monday.

The bank would be able to handle transactions connected to the collection of state taxes and revenue receipts such as GST and VAT, as well as stamp duty and pension payments on behalf of the central and state governments, as an RBI agency bank authorised to do government business.

The Reserve Bank of India's decision to allow Bandhan Bank to conduct government business as an agency bank will enable us contribute even more to nation development, and we appreciate the RBI's decision. Bandhan Bank has over 2.4 crore customers, and now we have the potential to provide banking services to the government, Bandhan Bank statement read.

Centre, World Bank sign an agreement to strengthen health systems in Meghalaya

New rules in Banks, Railways, LPG bookings from Nov 1

RBI changes current account opening rules for borrowers with exposure