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 subsidies
- Other government receipts and payments
Transactions not eligible for agency commission include:
- Transactions related to RBI’s own accounts
- Transactions related to state governments’ accounts
- Certain other specified transactions
Agency banks are required to report transactions to RBI and claim agency commission at the revised rates specified in the circular.
The revised rates for agency commission are:
| Sr. No. | Type of Transaction | Unit | Revised Rate |
|---|
Penal interest will be charged for wrong claims of agency commission.
The circular also provides a list of consolidated circulars and their details.
Chat with the Master Circular:
Download: Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission