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BFSI Chronicle, 11 Edition September2022
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and/or State Governments without taking Further Government Department / State Government
any fresh approval from RBI. have the option to discountinue the arrangement
after giving notice to the concerned Agency Banks,
For the purpose of undertaking Fresh/ keeping RBI informed
Additional Government Agency Business
by these existing Private Sector Agency Note: Once RBI authorizes a Bank for any Government
Banks, after obtaining approval from the Business, separate Approval from RBI with
Controller General of Accounts (CGA) (for regard to Mode (Physical or e-mode) and area
Central Government) or the Finance of operations is not required and the same will
Department of the State Government (for be decided by the Office of Controller General
State Government) they need to obtain of Accounts (CGA) (for Central Government) or
Approval from DGBA (Department of the Finance Department of the State Government,
Government and Bank Accounts). keeping RBI informed in the matter.

B) For other Private Sector Banks (Not having The Agency Banks also undertake the work related to
Agency Banking Agreement with RBI): Small Savings Schemes (SSS) the Commission which
Scheduled Private Sector Banks, not having is borne by the Government of India.
Agency Banking Agreement with RBI,
but intend to handle Government Agency Short-Term/Long-Term borrowings of State
Business, may be appointed as Agents of Governments raised directly from Financial
RBI upon execution of an Agreement with Institutions and Banks are not eligible for Agency
RBI. Commission as these transactions are not considered
to be like general banking business. Reserve Bank
This will be subject to the condition that the Pays the Agency Banks separate remuneration as
Concerned Bank is not under the Prompt agreed upon for acting as Agents for the Management
Corrective Action (PCA) framework or of Public Debt.
Moratorium at the time of making the
Application or Signing of the Agreement Whenever Agency Banks Collect Stamp Duty through
with RBI. Physical Mode or e-mode (challan based), they
are eligible for payment of Agency Commission,
The Choice of Accrediting an Agency Bank (Including provided the Agency Banks do not collect any
a Scheduled Private Sector Agency Banks) for any charges from the members of the public or receive
particular Government Agency Business rests remuneration from the State Governments for doing
solely with the concerned Central Government this work.
Departments/State Governments.

As per the Agency Bank Agreement, RBI pays Agency Commission at rates determined by it.
The rates applicable with effect from July 1, 2019, are as under:

Sr. No. Type of Transaction Unit Revised Rate

a. (i) Receipts - Physical mode Per transaction `40/-
(ii) Receipts - e-mode Per transaction `9/-
b. Pension Payments Per transaction `75/-
c. Payments other than Pension Per `100 turnover 6.5 paise per `100/-

The Institute Of Cost Accountants Of India

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