Dhanlaxmi Bank signs MoU with CBDT and CBIC for tax collection

Dhanlaxmi Bank on Thursday said it has signed a memorandum of understanding with Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes and Customs (CBIC) for collection of taxes.

The bank has been authorised by the Reserve Bank of India (RBI) based on the recommendation from the Controller General of Accounts for collection of various taxes, Dhanlaxmi Bank said in a regulatory filing.

With this, customers will soon be able to pay their direct taxes and GST payments and other indirect taxes through the branch network and digital platforms of the bank, it said.

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The technical integration required to implement the seamless flow of remittances from the bank's portal to that of CBDT and CBIC will be completed at the earliest in order to provide early access to its customers towards the facilities.

In October, the bank had been empanelled as 'Agency Bank' by RBI to undertake general banking businesses of central and state government on behalf of RBI.

It is to be noted that RBI had in 2020 appointed its General Manager D K Kashyap on the board of the bank for two years.

The central bank usually does not appoint its nominee on the boards of private banks unless there are exceptional circumstances to avoid any conflict of interest.

Kerala-based Dhanlaxmi Bank was put under the Prompt Corrective Action (PCA) framework by RBI in November 2015 due to its deteriorating financial health and only last year it came out of these restrictions. Since then it has posted profit.