The Reserve Bank of India has authorised South Indian Bankto collect direct and indirect taxes on behalf of the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes & Customs (CBIC).
The Kerala based bank signed an MoU with the CBDT and CBIC for collection of various taxes. The bank was earlier appointed as the Agency Bank of the RBI.
Customers of the bank will soon be able to pay their direct and indirect taxes through its digital channels such as SIBerNet Internet Banking and SIB Mirror+ Mobile Banking, as well as through its branches.
Murali Ramakrishnan, MD and CEO of South Indian Bank, said, “This is a milestone achievement for our organisation. This opens up a wide spectrum of opportunities for us. With this authorisation, our bank will enhance customer convenience for retail customers, small and medium enterprises and large corporates for government related banking transactions, taxes and other revenue payment facilities.”
The agreement was signed between South Indian Bank’s SGM & Country Head – Retail Banking Department Sanchay Sinha and the officials of CBDT and CBIC.