Kerala-Based Dhanlaxmi Bank Signs MoU with CBDT And CBIC for Tax Collection

BANKING AND ECONOMY

The Reserve Bank of India (RBI) authorized Kerala-based Dhanlaxmi Bank for the collection of various taxes on the recommendation of the Controller General of Accounts. For this purpose, the Dhanlaxmi bank signed a Memorandum of Understanding with the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC).

Once all the process is finalized, the customers of the bank are able to pay their direct taxes, indirect taxes and GST payments through the branch network and digital platforms of the bank. A needed technical infrastructure will be integrated for the implementation of the seamless flow of remittances from the bank’s portal to CBDT and CBIC.

In October 2021, the bank was designed as ‘Agency Bank’ by the RBI to undertake general banking businesses of central and state governments on behalf of the RBI. The Kerala-based bank was listed under the Prompt Corrective Action (PCA) framework by RBI between 2015 and 2021.

The bank was established in 1927 with the objective of customizing the banking services and personalizing relations between the customers and the bank. 

   Important points for the exam:

  • Dhanlaxmi Bank signed a Memorandum of Understanding with the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC).
  • The agreement was signed with the objective to pay various taxes through the platform (both online & offline) of the bank.
  • The bank was authorized by the Reserve Bank of India based on the recommendation of the Controller General of Accounts.
  • After the integration of the technical requirements, the customers are able to pay their direct taxes, indirect taxes and GST payments through the branch network and digital platforms of the bank.

   Facts to know:

  • Dhanlaxmi Bank, an Indian private sector bank was established in 1927.
  • Headquarters of Dhanlaxmi Bank: Thrissur, Kerala.
  • CEO & MD of Dhanlaxmi Bank: Mr.J. K. Shivan.
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