Government of West Bengal
Finance Department
Audit Branch (Group T)
“NABANNA” 325, Sarat Chatterjec Road, Howrah – 711102
(E- 1266247)
NO: 3310-F(Y) Date: 09.09.2025
MEMORANDUM
Sub: Allowing AU Small Finance Bank Ltd. to do non agency banking operations with State Government.
As per the Reserve Bank of India clarification letter no. BD.KOL.PAD.S294 dated 13.09.2021, State Government can engage any bank, including all Scheduled Commercial Banks, for non agency functions without reference to RBI, provided such banking functions do not qualify for payment of agency commission by RBI.
The undersigned is, therefore, directed to authorise AU SMALL FINANCE BANK LTD., having its Head Office in India at 19-A, Dhuleshwar Garden, Ajmer Road, Jaipur 302001, which has recently got in principle approval of RBI for transition into a universal Bank, to do the following non-agency banking operations of Government Departments, Subsidiary Offices and Semi Government Organisations in this State:
1. Issuing Bank Guarantee for Security Deposits etc. to be furnished by Government Contractors/ Suppliers.
2. Opening of Bank Accounts by autonomous/ statutory bodies for financial business.
3. Opening of a scheme related Bank Account, where the scheme fund is authorised to be drawn and credited to a Bank Account opened for the purpose.
However, to avail the benefit, the AU Small Finance Bank Ltd. will have to satisfy the following conditions:
a) Integration of the bank with SBMS module of IFMS.
b) Active participation of the bank in priority sector lending and flagship Schemes like KCC, Student Credit Card etc.
The approval is being given provisionally and will be reviewed after one year after assessing the performance of the Bank in financing the flagship Schemes of the State Government.
The terms and conditions of Finance department’s Memo Nos. 675-F dated 22.01.2008, 585-F(Y) dated 21.02.2013, 2261-F(Y) dated 15.03.2013 and 2603-F(Y) dated 30.04.2019 and other orders issued in this regard will apply for opening of Bank Account and its operation at AU SMALL FINANCE BANK LTD. as well.
This order will take immediate effect.
Sd/- Prabhat Kumar Misra, IAS
Additional Chief Secretary to the
Government of West Bengal