Government Expands Bank Network for Capital Gains Accounts

The Ministry of Finance, through a notification dated 19 November 2025, has expanded the list of authorised banks permitted to accept deposits and maintain accounts under the Capital Gains Account Scheme (CGAS), 1988. Building on earlier notifications issued in 1988 and 2012, the Central Government has now approved all non-rural branches of 19 banks, including major private and regional banks, to operate CGAS accounts. This enhancement aims to provide taxpayers wider access and greater convenience when depositing capital gains for purposes of availing tax exemptions under the Income-tax Act. The notification also clarifies that rural branches—defined as those located in areas with populations below 10,000 as per the 2011 census—are excluded from this authorization. By broadening the operational reach of the scheme, the government seeks to improve compliance, streamline taxpayer experience, and ensure easier availability of CGAS services across urban and semi-urban regions.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
New Delhi

Notification No. 162/2025-Income Tax Dated: 19th November, 2025

S.O. 5294(E).— In pursuance of clause (e) of paragraph 2 of the Capital Gains Account Scheme, 1988, and in continuation to the earlier notification numbers G.S.R.725(E), dated the 22^nd June, 1988 and G.S.R 859(E), dated the 30^th November, 2012, the Central Government hereby authorises all the branches (except rural branches) of the following banks to receive deposits and maintain accounts under the said Scheme, namely: –

(i) HDFC Bank Ltd;

(ii) ICICI Bank Ltd;

(iii) Axis Bank Ltd;

(iv) City Union Bank Ltd;

(v) DCB Bank Ltd;

(vi) Federal Bank Ltd;

(vii) IDFC FIRST Bank Ltd;

(viii) IndusInd Bank Ltd;

(ix) Jammu and Kashmir Bank Ltd;

(x) Karnataka Bank Ltd;

(xi) Karur Vysya Bank Ltd;

(xii) Kotak Mahindra Bank Ltd;

(xiii) RBL Bank Ltd;

(xiv) South Indian Bank Ltd;

(xv) Yes Bank Ltd;

(xvi) Dhanlaxmi Bank Ltd;

(xvii) Bandhan Bank Ltd;

(xviii) CSB Bank Ltd; and

(xix) Tamilnad Mercantile Bank Ltd.

Explanation. – For the purposes of this notification, a rural branch, in relation to the bank specified herein means a branch which is situate and is functioning at a centre, the population whereof, in accordance with the 2011 census is less than ten thousand.

[F. No. 162/2025/ F. No. 370142/23/2024-TPL]
KRITIKA JAIN, Under Secy. (Tax Policy and Legislation)