Categories: Banking

RBI allowed SFBs as Agency Bank to conduct Govt Business

Reserve Bank of India, in consultation with the Department of Financial Services, the Ministry of Finance, has decided to make the Scheduled payments banks and scheduled small finance banks (SFBs) eligible to conduct Government agency business. In May this year, RBI has revised the existing guidelines on ‘Appointment of Scheduled Private Sector Banks as Agency Banks of RBI’ for authorising Scheduled Private Sector Banks as agency banks of RBI for conducting govt business (Central and/or State).

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Thus, any payment bank or small finance bank which intends to undertake govt agency business could be appointed as an agent of RBI only upon execution of an agreement with RBI and also in compliance with the regulatory framework prescribed for those banks.

Important takeaways for all competitive exams: 

  • Reserve Bank of India Founded: April 1, 1935;
  • Reserve Bank of India Headquarters: Mumbai, Maharashtra;
  • Reserve Bank of India Governor: Shaktikanta Das.

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Sumit Arora

As a team lead and current affairs writer at Adda247, I am responsible for researching and producing engaging, informative content designed to assist candidates in preparing for national and state-level competitive government exams. I specialize in crafting insightful articles that keep aspirants updated on the latest trends and developments in current affairs. With a strong emphasis on educational excellence, my goal is to equip readers with the knowledge and confidence needed to excel in their exams. Through well-researched and thoughtfully written content, I strive to guide and support candidates on their journey to success.

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