Agency banks must be prompt with govt instructions: RBI

The Reserve Bank of India has asked agency banks, banking entities engaged in government business, to promptly execute instructions from central and state governments. 

They should not wait  for RBI directives . “It has been brought to the  government’s notice that some agency banks are not adhering to instructions/notifications issued by the government promptly. Banks have often say they have not received further communication from RBI.” it noted. 

Senior bank executives said beside tax related work, banks are also involved in managing assignment like payments for various programmes. The governments are concerned about implementing programmes in an efficient and time-bound manner. Hence, they are looking for prompt response and cooperation from the banks to ensure an ease in execution.    

Banks should directly approach concerned governments for queries related to such instructions.They can reach out to RBI only for the queries are related to reporting to RBI, it added.