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
– Collection of stamp duties
Transactions not eligible for agency commission include:
– Sale of government securities
– Collection of fees for government services
Agency banks are required to report all government transactions to the RBI, and claim agency commission at the revised rates specified in the circular.
The revised rates for agency commission are:
– 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
Agency banks are required to claim agency commission within the specified time limit, failing which penal interest will be charged.
The circular also provides a list of consolidated circulars and their corresponding dates and subjects.
Chat with the Master Circular:
Download: Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission