RBI allows agency banks to offer e-payment for taxes without prior approval
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2005-06/174 · issued 06 Oct 2005 · ~1 min read
Quick answerAgency banks can now set up e-payment facilities for government tax collections without seeking RBI's prior approval on a case-by-case basis, following DBOD circular RBI/005-06/71 dated July 20, 2005.
What changed
RBI removed the requirement for agency banks to obtain prior permission for each e-payment arrangement for government tax collections. Banks must now follow the DBOD circular dated July 20, 2005, instead of seeking case-by-case approval.
What it means for you
This simplifies the process for banks to roll out digital tax payment options for government departments, reducing administrative delays. Banks can now focus on implementing secure internet banking solutions aligned with existing DBOD guidelines, potentially increasing tax collection efficiency.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review the DBOD circular RBI/005-06/71 dated July 20, 2005, for compliance requirements on e-payment facilities.
Design and implement e-payment systems for government tax collections without seeking prior RBI approval.
Ensure your internet banking platform meets security and operational standards as per DBOD guidelines.
Acknowledge receipt of this circular.
Who it affects
Agency banks handling government tax collections, Government departments and ministries, Taxpayers using e-payment modes
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 19:44 IST
Status change: withdrawn05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Do we still need RBI approval for each e-payment facility for taxes?
No, prior approval is no longer required on a case-by-case basis. You must follow the DBOD circular dated July 20, 2005.
What guidelines should we follow for these e-payment facilities?
Refer to the DBOD circular RBI/005-06/71 dated July 20, 2005, available on the RBI website.
Does this circular apply to all government tax collections?
Yes, it covers e-payment arrangements for taxes on behalf of government departments and ministries.
📜 Read the original circular — full text as issued by RBI
RBI/2005-06/174
DGBA. GAD. No.H 3095/41.07.001/2005-06
October 06, 2005
Chairman & Managing Director/Managing Director
All Agency Banks
Dear Sir,
Conduct of Government business – Providing e-payment facilities to Tax Payers - Guidelines for Internet Banking
We have been receiving references from Agency banks seeking our permission for introducing e-payment arrangement for collection of taxes on behalf of Government Departments.
2. In this connection, we feel that the benefit accruing to the customers under e-payment mode should also be extended to Government and its customers. We would also like to bring to your attention the guidelines issued by our Department of Banking Operations and Development (DBOD) vide Circular RBI/005-06/71 dated July 20, 2005 in this regard (available on our website www.rbi.org.in )
3. In view of the above, we advise that there is no need to seek our prior approval for designing e-payment facilities on behalf of the Ministries/Departments on a case to case basis. You may, however, be guided by the DBOD Circular dated July 20, 2005 referred to above.
4. Please acknowledge receipt.
Yours faithfully,
(Girish Kallianpur)
Deputy General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/174 · issued 06 Oct 2005. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2529&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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