The Reserve Bank of India (RBI) has empanelled Mangaluru-headquartered private lender Karnataka Bank to act as an “agency nank” to facilitate transactions related to government businesses.
As an empanelled “agency bank”, Karnataka Bank is now authorised to undertake the government businesses such as revenue receipts and payments on behalf of the central and state governments, pension payments of governments, collection of stamp duty charges and other items of work advised by the RBI, the bank said in a statement.
Bank’s MD & CEO Mahabaleshwara MS said: “We are privileged to be appointed by the regulator to facilitate transactions pertaining to all kinds of Government led businesses. With Pan-India presence, driven by strong & robust technology and digital platforms, we are confident of being the best choice for the Central and State Governments in providing the best possible financial solutions in the most seamless manner. Further, with this arrangement, a level playing field is being ensured and it will augur well in developing a ‘cost lite’ liability portfolio for the Bank”.