Which of the following statements is/are correct with reference to the private sector banks?

A. Private sector banks are allowed for the conduct of Government-related banking transactions such as taxes and other revenue payment facilities, pension payments, small savings schemes, etc.

B. For undertaking government agency business, the RBI pays a commission to banks.

C. Both A & B

D. None of these

Explanation:

The Centre has lifted embargo on private sector banks for conduct of government related transactions. They include taxes and other revenue payment facilities, pension payment and small saving schemes. Private sector banks are allowed for the conduct of Government-related banking transactions such as taxes and other revenue payment facilities, pension payments, small savings schemes, etc. For undertaking government agency business, the RBI pays a commission to banks.