Authorization of Private Sector banks for extending Government business – Railway Board

Authorization of Private Sector banks for extending Government business including Government agency business – Railway Board Order dated 17.05.2021

भारत सरकार Government of India
रेल मंत्रालय Ministry of Railways
रेलवे बोर्ड (Railway Board)

RBA No.30 /2021

No.2021/ACII/9/2/e

New Delhi, dated: 17.05.2021

PFAs
All Zonal Railways and PUs.

Sub: Authorization of Private Sector banks for extending Government business including Government agency business.

Ref: (1) CGA/MOF vide O.M. no. R-23001/2021-GBA-CGA/243-29 dated 24.03.2021.
(2) RBI’s Circular no. RBI/2021-2022/36;CO. DGBA.GBD.No.S77/ 42.01.033 / 2021- 22 dated May10, 2021.

Please refer to Board’s letter no.2006/ACII/9/1,PtIl dated 07.12.2012 (RBA No.45/2012) vide which Government decision for imposing ban on allocation of Government Business to private sector banks was communicated. In this regard CGA/MOF vide letter dated 24.3.2021 has now advised that the embargo put in place by Department of Financial Services (DFS) Ministry of Finance (MoF) on further allocation of Government business to private sector banks has since been lifted by them (copy enclosed).

Further, it has also been clarified by CGA/MOF and RBI that the Private Sector Banks who were already authorized by RBI as Government Agency Bank for doing Government business (viz AXIS Bank, ICICI Bank and HDFC Bank are still authorized for allocation of Government business including government agency business. The guidelines for existing Private Sector Agency Banks already having agency banking agreement with RBI are as under:

a. Such existing private Sector Agency bank with whom RBI already has agency banking agreement and who are authorized to do government agency business for Central Government may continue to cu these government agency business for Central Government without taking any fresh approval from RBI.

b. For the purpose of undertaking fresh/additional government agency business by these existing private sector agency banks. after obtaining approval from O/o CGA for Central Government, the concerned Central Government Department will need to obtain approval from DGBA,. CO as per RBI’s Circular no. RBI/2011-2012/377:DGBA.GAD No. H-5029 /42.01.033/ 2011-12 dated January 31, 2012 (copy enclosed).

Necessary action may kindly be taken accordingly.

DA: As above

(Sanjeev Sharma)
OSD/ Accounts
Railway Board

Click here to view/download the pdf