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.
Eligible Transactions: Agency banks can claim commission on various government transactions, including tax collections, pension payments, and small savings schemes.
Ineligible Transactions: Certain transactions, such as those related to RBI’s own accounts, are not eligible for agency commission.
Reporting Requirements: Agency banks must report all government transactions to the RBI, including those eligible and ineligible for agency commission.
Agency Commission Rates: The RBI has revised the rates for agency commission, which vary depending on the type of transaction. The rates are listed in the circular.
Claiming Agency Commission: Agency banks must claim agency commission within the prescribed timeframe, and any wrong claims will attract penal interest.
Annexures: The circular includes an annexure listing all 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