Notification No. CO.DGBA.GBD.No.S44/31.02.007/2026-27, Dated: 30.04.2026
The Reserve Bank of India (RBI) has laid down a comprehensive framework governing the conduct of Government business by Agency Banks, covering agency commission, operational norms, and oversight mechanisms.
1. Scope of the Framework
- Applicable to agency Banks handling Government transactions
- Covers:
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- Collection and payment services
- Commission claims and compliance requirements
2. Key Provisions
2.1 Eligible and Ineligible Transactions
The framework clearly defines:
- Transactions eligible for agency commission
- Transactions excluded from commission claims
2.2 Agency Commission Structure
- Specifies applicable commission rates for different Government transactions
- Ensures uniformity and clarity in remuneration to banks
2.3 Timelines for Claims
- Banks must submit agency commission claims within prescribed timelines
- Delays may impact eligibility for reimbursement
2.4 Reporting Requirements
Banks are required to:
- Maintain accurate records
- Submit periodic reports to RBI
2.5 Audit and Oversight
- The framework mandates audit checks and verification processes
- Ensures:
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- Proper utilisation of public funds
- Compliance with regulatory norms
3. Accountability and Penal Provisions
- Banks are responsible for accuracy of commission claims
- In case of incorrect or excess claims
- RBI may levy penal interest
4. Objective of the Framework
The directions aim to:
- Enhance transparency and accountability
- Ensure efficient handling of Government transactions
- Strengthen financial discipline among Agency Banks
5. Conclusion
The framework establishes a structured and accountable system for Agency Banks, ensuring that Government business is conducted with accuracy, compliance, and proper oversight, while safeguarding public funds.
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