RBI permits payments banks and small finance banks to conduct Government agency business
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- Last Updated on 25 February, 2026
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Circular No. RBI/2021-22/140 CO.DGBA.GBD.No.S1112/42-01-033/2021-2022 Dated: 15-12-2021
The RBI, in consultation with the Department of Financial Services, Ministry of Finance, has decided to make scheduled payments banks and scheduled small finance banks eligible to conduct Government agency business. Any payment bank or small finance may be appointed as an agent of RBI upon execution of an agreement with RBI, subject to compliance with an overarching regulatory framework. Earlier, RBI made private bank banks eligible to conduct Government agency business.
Once RBI authorises a bank for any Government business, separate approval from RBI concerning mode (physical or e-mode) and area of operations is not required and the same will be decided by the Central Government or the Finance Department of the State Government, keeping RBI informed in the matter.
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