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 subsidies
- Payment of dividends
Transactions not eligible for agency commission include:
- Collection of stamp duty
- Payment of interest on loans
- Refund of taxes
Agency banks are required to report transactions to the RBI and claim agency commission at the revised rates specified in the circular.
The revised rates for agency commission are:
| Sr. No. | Type of Transaction | Unit | Revised Rate |
|---|---|---|---|
| 1 | Collection of taxes | Per Rs. 100 | Rs. 2.50 |
| 2 | Pension payments | Per Rs. 100 | Rs. 1.50 |
Penal interest will be charged for wrong claims of agency commission.
The circular also includes an annex listing the 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