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BFSI Chronicle, 11 Edition September 2022
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Pension Payments in respect of Central in nature by the Government to cover Losses
Government/State Governments and incurred by Autonomous/Statutory Bodies/
Municipalities/ Corporations/Local Bodies,
Any other item of work specifically advised etc.
by Reserve Bank as eligible for ‘Agency
Commission’. d) Prefunded Schemes may be implemented by a
Central Government Ministry/Department (in
Transactions Covered: consultation with CGA) and a State Government
An Agency Bank is Authorized to handle transactions Department through any Bank.
pertaining to the following types of Government
Businesses: e) Transactions related to Gold Monetization
Scheme 2015
 Revenue Receipts under CBDT, CBIC & GST
on behalf of the State Government / Central f) Any other item of Work Specifically advised by
Government. Reserve Bank or Central or State Government
as Ineligible for Agency Commission.
Pension Payments on behalf of the State
Governments/Central Government. g) Transactions arising out of Letters of Credit /
Bank Guarantee opened by Banks on behalf of
 Work related to Small Savings Schemes (SSS). Ministries/Departments etc. do not qualify for
Agency Commission as RBI only reimburses the
 Collection of Stamp Duty Charges. paid amount to the banks based on the mandate
received from the Governments.
 Collection of Stamp Duty from Citizens for the
franking of documents. Reserve Bank of India’s Revised Guidelines
on the Appointment of Agency Banks:
 Collection of State Taxes such as Professional The existing guidelines on the appointment of
Tax, State Excise, etc. on behalf of various State Scheduled Private Sector Banks as Agency Banks of
Governments. RBI have been reviewed and the revised guidelines/
framework for authorizing Scheduled Private Sector
Ineligible items for Agency Commission: Banks as Agency Banks of RBI for the conduct of
The following activities do not come under the Government Business attracting Agency Commission
purview of Agency Bank Business and are therefore are as follows:
not eligible for payment of Agency Commission.
A) For Existing Private Sector Agency Banks
a) Furnishing of Bank Guarantees/Security (Already having Agency Banking Agreement
Deposits, etc. through Agency Banks by with RBI):
Government Contractors/Suppliers, which Such existing private Sector Agency Bank
constitute Banking Transactions undertaken with whom RBI already has Agency
by Banks for their Customers. Banking Agreement and who are authorized
to do Government Agency Business for
b) The Banking Business of Autonomous/ Civil/Non-Civil Ministry/Department
StatutoryBodies/Municipalities/ (for Central Government) or concerned
Companies/ Corporations/Local Bodies. department of a State Governments (for
State Government) may continue to do these
c) Payments that have been Classified as Capital Government Agency Businesses for Central

The Institute Of Cost Accountants Of India

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