Karnataka Bank Gets RBI Permission To Collect Direct And Indirect Taxes

The Central Bank of India has granted Karnataka Bank permission to collect direct and indirect taxes on behalf of CBDT and CBIC. According to a regulatory filing by Karnataka Bank, this was carried out on the advice of the Controller General of Accounts (CGA), Ministry of Finance.
The Central Bank of India provides this authorization. According to the submission, the Controller General of Accounts (CGA), Ministry of Finance, recommended that the RBI provide this authorization.

The statement went on to say that clients who choose Karnataka Bank on the CBIC's Indian Customs Electronic Gateway "ICEGATE" portal are already able to make hassle-free online payments for customs duties. According to the filing, the trade, goods transporters, and other trading partners have access to electronic filing services through the CBIC's (ICEGA TE) portal.

Karnataka Bank has now been on-boarded for the new integration that CBIC has created for the Electronic Cash Ledger (ECL), which has the functionality of collecting both tax and non-tax receipts for CBIC on behalf of third-party applications through several means of collections.