The third largest private lender in the country, Axis Bank has received permission from the Reserve Bank of India to act as a primary dealer in the Government securities market.

The bank would be able to start its operations from 5th April 2010.

"Axis Bank has been authorized by the Reserve Bank to undertake primary dealer business departmentally in government securities market with effect from Monday, April 5," RBI said.

As a result of the approval to participate as primary dealer the bank would be able to participate in the government bond auction that is scheduled from 5th to 9th of April 2010, a treasury official said.

The permission received by the bank follows the announcement that RBI had made in its annual policy statement for the year 2005-06 that the structure of primary dealership business in the Government securities market would be modeled so as to include banks.

These banks however would have to meet the eligibility criteria set for the same.

Thus the RBI had released a circular on the eligibility criteria of banks to participate in the Primary Dealership business departmentally on February 27, 2006.