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, duties, and other revenue
– Payment of pensions, salaries, and wages
– Disbursal of subsidies and grants
Transactions not eligible for agency commission include:
– Sale of government securities
– Collection of fees and other charges
Agency banks are required to report transactions to the RBI and claim agency commission at the revised rates specified in the circular.
The rates for agency commission vary by transaction type, with a maximum rate of 0.15% applicable to certain transactions.
Penal interest will be charged on wrong claims of agency commission.
The circular consolidates previous circulars on the subject and provides an annexure listing the consolidated circulars.
Chat with the Master Circular:
Download: Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission