Conduct of Government Business by Agency Banks
The Reserve Bank of India (RBI) has issued a master circular outlining the guidelines for agency banks conducting government business.
Government transactions eligible for agency commission include:
– Collection of taxes
– Pension payments
– Disbursal of subsidies
– Other government receipts and payments
Transactions not eligible for agency commission include:
– Transactions related to small savings schemes
– Transactions related to national savings certificates
– Other specified transactions
Agency banks are required to report transactions to the RBI and claim agency commission at revised rates.
The rates for agency commission are as follows:
– Sr. No.: Type of Transaction, Unit, Revised Rate
Other issues addressed in the circular include:
– Deduction of TDS on agency commission
– Penal interest for wrong claims
The circular also provides 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