RBI permits Karnataka Bank to collect direct, indirect taxes

All our customers can pay customs duty at their convenience through an internet banking facility, the MD said

The Reserve Bank of India (RBI) has authorised private sector lender Karnataka Bank to collect direct and indirect taxes on behalf of the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC).

The authorisation has been given on the recommendation from the Controller General of Accounts (CGA), Ministry of Finance, Mangaluru-headquartered Karnataka Bank said in a regulatory filing.

“Karnataka Bank is one among the few Banks in the country to get final approval from Principal Chief Controller of Accounts, CBIC, New Delhi for collection of customs duty payment under the new regime,” said Mahabaleshwara MS, Managing Director & CEO, Karnataka Bank.

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All our customers can pay customs duty at their convenience through an internet banking facility, he said.

This will have a more positive impact on the forex business of the Bank and also help in augmenting CASA (current account savings account) deposits, he added.