How does Reserve Bank of India discharges its statutory obligation of being Banker to Government?
Reserve Bank of India maintains the Principal Accounts of Central as well as State Government’s at its Central Accounts Section, Nagpur. It has put in place a well structured arrangement for revenue collection as well as payments on behalf of Government across the country. A network comprising the Public Account Departments of RBI and branches of Agency Banks appointed under Section 45 of the RBI Act carry out the Govt. transactions. At present all the public sector banks and private sector banks viz. ICICI Bank Ltd., HDFC Bank Ltd.and UTI Bank Ltd. act as RBI’s agents. Only authorised branches of Agency banks can conduct Govt. business.
