State Bank of India (SBI) has been retained by the Finance Ministry to provide prompt refunds to individual taxpayers in Delhi and Patna with immediate effect.

SBI will provide the tax refunds on behalf of the Income Tax Department and work under direct charge of Revenue Department.

Finance Minister P Chidambaram is scheduled to kick off the refund drive by SBI later in the day. SBI will make refunds directly into the tax assesses bank accounts as provided in the Income Tax returns.

A Finance Ministry official said that based on the experience, this service of making prompt tax-related refunds would be extended to other cities. Sources said that the public sector banks have been roped in to cut in refund delays.