HDFC Bank, a leading private sector lender, will now allow online customs duties for customers as the bank’s integration with the Central Council of Indirect Taxation and Customs (CBIC) ICEGATE platform has gone live. Customers can pay their customs duties directly through the bank.
This follows the authorization by CBIC’s Principal Chief Controller of Accounts to collect IGST on imports and exports of goods and services. HDFC Bank said it has facilitated both retail and wholesale payments of customs duties.
With HDFC Bank on board, customers no longer need to route payments through other bank accounts. This integration also allows the bank to purchase current accounts from customers who bank with others who do not offer this facility, according to a statement shared by the bank today.
Regulations of the Reserve Bank of India (RBI) allow the opening of checking accounts for specific purposes, such as statutory payments.
“Digital payments of customs duties will make doing business in India easier,” said Smita Bhagat, Group Head of Government and Institutional Business, Partnership and Inclusive Banking Group Startup Banking, HDFC Bank.
Online customs duty collection ensures transparency and efficiency on a large scale. There is a huge increase in online payments due to the restrictions imposed by the pandemic and government initiatives such as demonetization, GST, Digital India and mandatory e-invoicing, Bhagat said.
HDFC bank was appointed by the RBI in 2001 as the first desk bank to digitize tax collections. It is also the second largest government agency bank for direct tax collection and GST payments.
“Based on this experience, two other banks were established in 2003. Today, as the largest private bank in India for tax collection, we strongly believe that a partnership between government and private players has the power to change lives Sunali Rohra, Executive Vice President, Government and Institutional Business & Gig Banking, HDFC Bank, said.
The lender said that several state governments have also authorized the bank for various types of collections such as stamp duty, registration duty. The bank is also integrated with the government’s GeM portal for accepting caution money deposits for tenders through the portal.
On Friday, January 7, shares of HDFC Bank were up 0.68 percent at Rs 1,550.40 each on the BSE.