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 transactions to the RBI and claim agency commission at the revised rates:
– 0.25% for transactions up to ₹1 lakh
– 0.15% for transactions above ₹1 lakh and up to ₹10 lakh
– 0.10% for transactions above ₹10 lakh
Penal interest will be charged for wrong claims of agency commission.
The Master Circular consolidates the following circulars:
– List of circulars provided in Annex 1
Chat with the Master Circular:
Download: Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission