The Reserve Bank of India has allowed scheduled payments banks and scheduled small finance banks to conduct government agency business.
The central bank stated on Wednesday that the decision has been taken in this regard in consultation with the Department of Financial Services (DFS), Ministry of Finance (MoF).
Any payment bank or small finance bank that intends to undertake Government agency business may be appointed as an agent of RBI upon execution of an agreement with RBI, provided that the overarching regulatory framework prescribed for these banks is complied with.
All the instructions/conditions prescribed in RBI’s circular dated 2021, will henceforth be applicable to the scheduled payments banks and scheduled small finance banks also, as the regulator stated.
