J&K Bank – the premier bank in the region - shall continue to act as an agent of Reserve Bank of India (RBI) to conduct its agency banking business in the newly formed Union Territories (UTs) of Jammu & Kashmir, and Ladakh.
Acknowledging the systemic significance of the bank for the region, the RBI in its latest letter has advised that bank will continue to undertake agency banking business in these two union territories. The latest move by the RBI came in view of the provisions of Jammu and Kashmir Reorganization Act, 2019 (No. 34 of 2019) dated August 9, 2019.
Notably, J&K Bank has been conducting the agency banking business of the RBI since December 2010, which includes revenue collection in respect of excise, PDD PHE, transport and commercial taxes departments and payments on behalf of the state government.
The latest communication, analysts believe, is quite timely that will boost the peoples’ confidence besides buttressing the bank’s recent reiterations and assurances to its customers and public at large. The development is in line with the confidence, The RBI has in the functioning of the bank keeping in view its strong fundamentals.