The Reserve Bank of India has authorized ______ to collect direct taxes on behalf of the Central Board of Direct Taxes (CBDT).
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Karur Vysya Bank (KVB)
In October 2021 the Reserve Bank of India authorised Karur Vysya Bank, a private-sector bank based in Karur, Tamil Nadu, to collect direct taxes (such as income tax) on behalf of the CBDT. Banks given this work by the RBI act as its agency banks, so taxpayers can pay their direct taxes through them.