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.
The circular specifies the government transactions eligible for agency commission, which include transactions such as tax collections, pension payments, and government receipts.
The revised rates for agency commission are as follows:
Sr. No. Type of Transaction Unit Revised Rate
Agency banks are required to claim agency commission in accordance with the prescribed procedure. The circular also outlines the procedure for deduction of Tax Deducted at Source (TDS) on agency commission.
In case of wrong claims, penal interest will be charged. The circular also provides an annexure listing the circulars consolidated in the Master Circular.
The Master Circular aims to provide a comprehensive guide for agency banks conducting government business.
Chat with the Master Circular:
Download: Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission