New Delhi, July 18: Bank of Baroda eyes significant government business through its new hi-tech remittance product 'BOB Money Express' that enables fund transfer within a day. "RBI has impressed upon banks to go for special electronic fund transfer (EFT) so that remittances collected on behalf of government can be credited to its account at Nagpur on the same day. BoB is the first public sector bank to launch this product," BoB chairman, P S Shenoy, said in a video-conference from Baroda.
BoB currently has 500 tax collection centres, which would now be able to transfer money to government's account in Nagpur through Money Express within a day.
Government will gain from the additional liquidity as currently it takes banks 4-5 days to transfer the funds.
BoB earned Rs 30 crore from float charges and commission from government last fiscal. This is expected to go up significantly after the launch of Money Express.
Bureau Report