The apex bank of the country- RBI has now permitted the urban cooperative banks to act as the PAN Service agents. Earlier only well managed were allowed to work as the PAN Service agents.

RBI has instructed that With a view to expanding the scope of fee-based services offered by UCBs, it has now been decided to permit all UCBs to act as PAN Service Agent (PSA) by entering into a tie-up with any agency authorised by Income Tax Department.

However RBI has also instructed that the NPA of the UCBS should not exceed more 3% and the gross NPAs should be less than 7%.