Mangaluru-based private lender Karnataka Bank on Wednesday said the bank has been authorised by the Reserve Bank of India (RBI) for the collection of direct and indirect taxes on behalf of the Central Board of Direct Taxes (CBDT) and Central Board for Indirect Taxes and Customs (CBIC).

Share Market Live

NSE

"Bank customers are already enjoying seamless payments for custom duty payments online, by selecting 'Karnataka Bank' in the Indian Customs Electronic Gateway 'ICEGATE' portal of CBIC," the bank said in an exchange filing.

The (ICEGA TE) portal of CBIC provides e-filing services to the trade, cargo carriers, and other trading partners electronically, it said.

Also Read: Ujjivan Small Finance Bank plans to go aggressive on gold loans pan India

Now CBIC has implemented new integration for Electronic Cash Ledger (ECL) with the functionality of collection of both tax and non-tax receipts for CBIC on behalf of third-party applications through multiple modes of collections and Karnataka Bank is on-boarded for the same, the bank said.

Mahabaleshwara MS, managing director, and CEO said customs duty payment through Karnataka Bank will have a more positive impact on the forex business of the bank and also help in augmenting CASA Deposits. This is yet another digital initiative being dedicated to our customers under the KBL Nxt Digital transformation project of the bank.

(Edited by : Pradeep John)