What changed
The agency commission structure moved from a percentage of transaction volume to a fixed per-transaction rate. The new rates are Rs.45 per receipt transaction, Rs.50 per non-pension payment, and Rs.60 per pension payment, effective from July 1, 2005. RBI will review these rates by end-March 2006 and may revise them up or down.
What it means for you
Banks must now track individual transactions rather than total volume to claim commission, requiring robust record-keeping at branch level. The higher per-transaction rate for pension payments (Rs.60) signals RBI's focus on improving pensioner service quality. Banks should prepare for potential rate revisions after the March 2006 review and ensure error-free scrolls, as error transactions are ineligible.
What you must do
- Maintain detailed per-transaction records for receipts, payments, and pension transactions to support commission claims.
- Ensure daily branch scrolls submitted to Government Accounting authorities are accurate and error-free.
- Furnish the prescribed certificate regarding statutory tax liability while claiming commission.
- Monitor service quality, especially for pensioners, as RBI will emphasize this in its oversight.
- Prepare for the end-March 2006 rate review by analyzing transaction costs and volumes.
Who it affects
All agency banks handling government business, Bank branches processing government receipts and payments, Pension disbursing branches, Bank compliance and treasury departments
What is the effective date for the new per-transaction commission rates?
The rates are effective for transactions from July 1, 2005 onwards. The date of realization of cheque/draft or deposit of cash is considered the transaction date.
Are error scroll transactions eligible for agency commission?
No, transactions reported in 'Error scrolls' are not eligible for agency commission. Only transactions in daily branch scrolls rendered to Government Accounting authorities count.
Will the agency commission rates change after March 2006?
Yes, RBI will review the rates by end-March 2006 and may revise them upward or downward based on the analysis.