Conduct of Government Business by Agency Banks
The Reserve Bank of India (RBI) has issued a Master Circular on the conduct of government business by agency banks, outlining the guidelines for payment of 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 transactions to the RBI, and the revised rates for agency commission are as follows:
Sr. No. Type of Transaction Unit Revised Rate
Agency banks can claim agency commission, and penal interest will be charged for wrong claims.
The Master Circular consolidates the following circulars:
No. Circular No. Date Subject
Annex 1 provides a list of circulars consolidated in the Master Circular.
Chat with the Master Circular:
Download: Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission