<h1>Agency Bank&nbsp;</h1> <h2><img src="https://sunyaias-resources.s3.ap-south-1.amazonaws.com/content/5223e0f5-4168-11ec-9884-171ec78830e5.png"></h2> <h2>﻿Context:</h2> <ul><li>Recently, several banks such as Karnataka Bank, IndusInd Bank, DCB bank and South Indian got empanelled as Agency Bank to the Reserve Bank of India(RBI).</li></ul> <h2>Agency Bank:&nbsp;</h2> <ul><li>It is a bank that performs services in some capacity on behalf of an entity and&nbsp;can offer a wide variety of services for businesses looking to expand internationally.</li></ul> <ul><li>RBI has empanelled these banks as ‘Agency Bank’ to facilitate banking and payment transactions for Centre and the state governments, pension payments, work related to Small Savings Schemes (SSS), collection of stamp duty through physical mode or e-mode, and any other item of work, specifically devised by the RBI as eligible for agency commission&nbsp;</li></ul> <ul><li>Agent banks cater to the needs of both individuals as well as businesses through a wide range of services.</li></ul>