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BFSI Chronicle, 11 Edition September 2022
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Agency Banks would be eligible to claim Agency i.e., A Chartered Accountant or Cost Accountant,
Commission for Pension Transactions at the Rate before submission to RBI.
of `75 per transaction only when the entire work
relating to the disbursement of pension including For Central Govt. Transactions:
pension calculation is attended to by them. If the work  The Certified Final Claim, duly signed by the
relating to pension calculations etc. is attended to by Head of Government Accounts Department of
the concerned Government Department / Treasury Banks, along with all the required certificates
and the banks are required only to credit the amount and declarations as stipulated by RBI, is
of pension to the pensioners’ accounts maintained submitted to RBI, CAS, Nagpur as per RBI
with them by a Single Debit to Government Account, Notification RBI/2019-20/21 DGBA.GBD.
such transaction is to be categorized under ‘other No.5/31.02.007/2019-20.
than pension payment’ and would be eligible for
payment of Agency Commission @ 6.5 paise per  As per RBI’s requirement, for Every Quarter, a
`100/- turnover w.e.f. July 1, 2019. Certificate regarding Pension, duly Signed by
the Head of Government Business Unit of the
All Agency Banks should settle their Agency Banks, is also submitted.
Transactions for both funds and Agency Commission
directly with the concerned Regional Offices of  The Claim of Agency Commission is submitted
Reserve Bank instead of routing them through any by GAD of Banks to RBI after sign-off from
other Agency Bank that acts as an aggregator in Compliance Department of Banks.
certain cases. So also, payments made by all Agency
Banks on behalf of State Government/s get directly For State Govt. Claims, Similar Certificates are
settled with the concerned Regional Office of RBI. required, by External/Internal Auditors & Zonal
Agency Transaction details/scrolls may be sent Office Heads of the Banks. The Commission Claims
directly by individual Agency Banks to the concerned on State Govt. Business is to be submitted through
State Government/Treasury. This new arrangement Head Office, Compliance Department.
for settlement of State Government funds on a day-
to-day basis (Receipts and Payments) directly with Agency Banks are advised to meticulously follow
the Reserve Bank is with effect from January 1, 2018. instructions issued by RBI from time to time regarding
transactions that are not eligible for an agency
The formats for claiming Agency Commission for commission and submit their claims for Agency
all Agency Banks and separate and distinctive sets Commission accordingly. All Agency Banks while
of certificates to be signed by the branch officials claiming Agency Commission should certify that no
and Chartered Accountants or Cost Accountants claim of Agency Commission is made on ineligible
are given in Annex 2, Annex 2A, and Annex 2B transactions.
respectively. These Certificates would be in addition
to the usual Certificate from ED / CGM (in charge of List of Agency Banks (Public Sector Banks) Agency
Government Business) to the effect that there are no Agreement with RBI: Bank of Baroda, Bank of India,
pension arrears to be Credited / Delays in crediting Bank of Maharashtra, Canara Bank, Central Bank of
regular Pension/Arrears thereof. India, Indian Bank, Indian Overseas Bank, Punjab
and Sind Bank, Punjab National Bank, State Bank of

Verification and Certifi cations: India, UCO Bank, Union Bank of India.
The Agency Commission on Central/State Govt.
Transactions calculated by GAD/FSLOs are required List of Agency Banks (Private Sector Banks) Agency
to be checked and Certified by the Internal Auditor, Agreement with RBI: Axis Bank Ltd., DCB Bank Ltd,
i.e., a Concurrent Auditor, and An External Auditor, Federal Bank Ltd., HDFC Bank Ltd., ICICI Bank Ltd.,

The Institute Of Cost Accountants Of India

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