The Reserve Bank of India has issued consolidated directions for agency banks that conduct Central and State government banking business, bringing together the rules on appointment and accreditation, agency commission eligibility, claims and reporting, and supervisory oversight. The directions apply immediately to appointed public sector banks, scheduled private sector banks, payments banks and small finance banks, and new appointments remain subject to an agreement with RBI and the applicant not being under the Prompt Corrective Action framework or moratorium. The directions set out agency commission rates applicable from April 1, 2025 at INR 40 per physical receipt, INR 12 per electronic receipt, INR 80 per pension payment and 7 paise per INR 100 turnover for payments other than pension. Claims must be filed within 60 calendar days from the end of the quarter in the prescribed format with required certifications. A single challan is to be treated as a single transaction for commission purposes, pension commission claims cannot exceed 14 transactions per pensioner per financial year, and transactions handled jointly by two banks are split 75:25. Eligible business covers specified Central and State government receipts and payments, including certain stamp duty collections, while prefunded schemes, banks’ own tax payments, autonomous body banking, Gold Monetisation Scheme transactions and other listed items are excluded. Wrong claims that have been settled will attract penal interest at Bank Rate plus 2%. Operationally, banks collecting Goods and Services Tax, indirect taxes through the Indian Customs Electronic Data Interchange Gateway, and direct taxes under Tax Information Network 2.0 must upload luggage files to the Quantum Payments Exchange or e-Kuber by 1800 on all days except Global Holidays, with no extension to the cut-off. Central government transactions reported after 90 days require prior approval from the relevant ministry or department, state government transactions reported after the fourth of the succeeding month need confirmation from competent state authorities, and RBI inspections will continue with replies to major action points due within 30 days. The directions also require internal or concurrent audits to verify government business controls and commission claims, and they repeal the earlier directions and circulars listed in the annex while preserving actions already taken under them.
Reserve Bank of India 2026-04-30
Reserve Bank of India issues consolidated directions for agency banks on government business commission and oversight
The Reserve Bank of India has issued consolidated directions for agency banks handling Central and State government business, covering appointment and accreditation criteria, eligible business, agency commission, reporting and supervisory oversight, and repealing earlier instructions. The directions, effective immediately for appointed public sector banks, scheduled private sector banks, payments banks and small finance banks, specify commission rates from April 1, 2025, eligibility and exclusions for commission claims, operational cut-off requirements for tax-related uploads to RBI systems, and enhanced audit and inspection expectations.