Scheduled payment banks, SFBs to do government agency business: RBI

Bank executives said this is step to broad-base set up and enhance quality of service for government business

The Reserve Bank of India (RBI) has thrown open the government agency business like tax collection to scheduled payment banks and scheduled small finance banks (SFBs). This is part of move to provide further scope to private banks to conduct government agency business.

It has now been decided in consultation with the  government of India, to make scheduled payments banks and scheduled small finance banks eligible to conduct such business, RBI said in a notification.  

Any payment bank or small finance bank that intends to undertake government agency business may be appointed as an agent of RBI upon execution of