Dhanlaxmi Bank signed MoU with CBDT, CBIC for tax collection

For the collection of taxes, Dhanlaxmi Bank has signed a memorandum of understanding with the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC). Dhanlaxmi Bank said in a regulatory filing that the Reserve Bank of India (RBI) has authorised the bank to collect different taxes based on a recommendation from the Controller General of Accounts.

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Key Points:

• The technical integration required to implement the seamless flow of remittances from the bank’s portal to the CBDT and CBIC portals will be implemented as soon as possible in order to give customers early access to the facilities.
• The bank was empanelled as a ‘Agency Bank’ by the RBI in October, allowing it to handle general banking activity for the federal and state governments on their behalf.
• It should be noted that RBI’s General Manager D K Kashyap was appointed to the bank’s board of directors for a two-year term in 2020.
• To avoid any conflict of interest, the central bank normally does not appoint its nominee to the boards of private banks unless there are extraordinary circumstances.

Dhanlaxmi Bank, based in Kerala, was placed under the RBI’s Prompt Corrective Action (PCA) framework in November 2015 due to its poor financial condition, and it was only last year that it was released. It has been profitable since then.

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