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.
What you must do
- 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
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.