RBI Authorises IndusInd Bank to act as an ‘Agency Bank’

WHY IN THE NEWS?

• The IndusInd Bank has been empanelled by the Reserve Bank of India (RBI) to act as an ‘Agency Bank’. As an Agency Bank, IndusInd becomes eligible to carry out transactions related to all kinds of government-led businesses.
• This decision is based on the RBI guideline that authorises scheduled private sector banks as agency banks of the regulator for the conduct of government business.
• IndusInd Bank now joins few other private banks of the country listed as Agency Bank of RBI, to carry out general banking business on behalf of the central and state government, apart from offering its customers the convenience of undertaking routine financial transactions through its banking platform.