Last min rush: RBI allows 29 banks to collect income tax

Last min rush: RBI allows 29 banks to collect income tax

The Reserve Bank of India (RBI) on Wednesday authorised 29 commercial banks to accept  payment of income tax dues in Mumbai. The State Bank of India ( SBI ), ICICI Bank , HDFC Bank , Bank of Baroda , Bank of India and Axis Bank are some of the prominent lenders, which  can collect income tax (I-T) from payers. 

"The rush for remitting income tax dues through the RBI has been far too heavy towards the end  of September. It becomes difficult for the Reserve Bank to cope with the pressure of receipts  despite opening additional counters to the maximum extent possible for the purpose. Consequently, members of public are required to wait in queues at the Reserve Bank for  unnecessarily long periods," the central bank said in a release on Wednesday. 

RBI has also urged the assessees to take advantage of paying taxes at select branches of accredited agency banks, which have been authorised to accept payments of Income Tax dues. Most of these banks also provide facilities for on-line payment of taxes, it has added. 

Some other banks include Allahabad Bank , Syndicate Bank , Andhra Bank , UCO Bank , Union Bank of India , United Bank of India , Bank of Maharashtra , Vijaya Bank , Canara Bank , Central Bank of India , State Bank of Bikaner & Jaipur , Corporation Bank , State Bank of Hyderabad, Dena Bank, State Bank of Travancore, IDBI Bank, State Bank of Mysore, Indian Bank , State Bank of Patiala, Indian Overseas Bank , Oriental Bank of Commerce , Punjab & Sind Bank, and Punjab National Bank.
(Money Control)

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RBI says all banking licence applicants will have to comply with their norms By CMA Samir Biswal

There is also a committee on this, which is likely to be set up. “We are in the process, but the committee’s work will start after the internal scrutiny is over. We have some time,” said Sinha.

On the Know Your Customer (KYC) norms, he said there are still complaints that people find it difficult to open accounts. “What we gather is that RBI’s instructions are not really well percolated down into the branches and that is where banks have a responsibility to ensure that,” he said.

He suggested the identity requirements could be simplified for certain no-frills accounts. “Banks could also be encouraged to revise products suiting to these segments in terms of lower charges, lower or no minimum balance requirement etc.”

ALSO READ: RBI announces final guidelines on new banking licences

from a policy perspective, foreign banks are into setting up wholly-owned subsidiaries. “When that happens as per the discussion paper that we have issued, foreign banks would be almost at par with the domestic banks in terms of almost everything including branch expansion,” said Sinha.

When the wholly-owned subsidiary scheme kicks off, the whole of India will be available to foreign banks at par with the domestic banks. “Those who want to really exploit, there will be huge opportunities. This is a scheme in the discussion paper and I hope when the final scheme comes, it will be more or less on the same lines,” said Sinha.

This Article is written by CMA Samir Biswal. He can be reached at cmasamirbiswal@gmail.com

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