Q. Which scheduled commercial banks have recently been permitted by RBI to act as agency banks for the government?
Answer: Scheduled Small Finance Banks & Scheduled Payments Banks
Notes: Recently 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 authorizing Scheduled Private Sector Banks as agency banks of RBI for conducting govt business (Central and/or State).