The Reserve Bank of India issued a revised master circular on payment of agency commission to agency banks conducting Central and State government business, consolidating instructions issued through March 31, 2025. The circular restates which transactions qualify for agency commission, the operational reporting and settlement requirements for government receipts and payments, and the controls around claiming and audit certification, including penalties for wrong claims. Eligible business includes revenue receipts and payments for governments, pension disbursements, and other tasks specifically advised by the Reserve Bank of India as eligible, while excluding items such as State government borrowings raised directly from banks and financial institutions, agency banks’ own tax payments, prefunded schemes, and transactions related to the Gold Monetisation Scheme. The commission rates applicable from July 1, 2019 remain INR 40 per physical receipt, INR 9 per electronic receipt, INR 75 per pension transaction and 6.5 paise per INR 100 turnover for other payments, alongside clarifications that a single challan including a GST Common Portal Identification Number should be treated as a single transaction and that pension claims should not exceed 14 transactions per pensioner per year. For GST, ICEGATE and direct tax collections under the TIN 2.0 channel, authorised agency banks must upload luggage files in RBI’s QPX or e-Kuber by 1800 hours on all days except specified global holidays with no extension beyond the cut-off, and Central government transactions reported after 90 days require prior approval from the relevant ministry or department. Claims must be submitted in prescribed formats within 60 calendar days of quarter end to the Central Accounts Section in Nagpur or the relevant RBI regional office, with specified receipt categories settled at RBI’s Mumbai regional office, and wrong claims attract penal interest at the RBI Bank Rate plus 2%.
Reserve Bank of India 2025-04-01
Reserve Bank of India updates master circular on agency commission for government transactions handled by agency banks
The Reserve Bank of India issued a revised master circular on agency commission for banks managing Central and State government business, consolidating instructions up to March 31, 2025. It outlines eligible transactions, operational requirements, and penalties for incorrect claims, with commission rates unchanged since July 1, 2019. The circular specifies reporting protocols for GST, ICEGATE, and direct tax collections, emphasizing timely submissions and penalties for late reporting.