DBS Bank India Becomes RBI Agency Bank for GST Collection
Why in the news
The RBI authorised DBS Bank India as an agency bank, a first for such a subsidiary, to accept GST payments for the CBIC.
Authorisation
- Modes: DBS IDEAL, NEFT, RTGS, OTC.
- IDEAL gives live updates, instant acknowledgements, downloadable advice and GST support.
Agency banks
- Banks authorised by RBI to act for Central and State governments.
- Tasks: collect direct and indirect taxes, pay pensions and subsidies, issue and redeem G-secs and savings bonds.
- RBI cannot handle millions of transactions itself, so scheduled commercial banks serve as agents, widening reach.
Exam angle
- Appointing authority: RBI.
- Beneficiary: CBIC, Ministry of Finance.