Conduct of Government Business by Agency Banks
The Reserve Bank of India (RBI) has issued a Master Circular outlining the guidelines for agency banks to conduct government business and claim agency commission.
Government transactions eligible for agency commission include:
– Collection of taxes
– Pension payments
– Disbursement of loans and advances
– Collection of stamp duty
Transactions not eligible for agency commission include:
– Sale of government securities
– Collection of fees for government services
Agency banks are required to report all government transactions to the RBI.
The revised rates for agency commission are as follows:
Sr. No. Type of Transaction Unit Revised Rate
Agency banks can claim agency commission on a quarterly basis.
Penal interest will be charged on wrong claims.
The Master Circular consolidates the following circulars:
(List of circulars)
Chat with the Master Circular:
Download: Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission