What changed
RBI issued clarifications on agency commission for PPF and SCSS, following its March 16, 2007 circular. Banks must now submit claims in prescribed formats (Annex I, II, III) per quarter. Arrears up to March 31, 2007 must be filed by June 10, 2007. Claims require auditor certification, and any prior GoI remuneration will be recovered.
What it means for you
Banks handling PPF and SCSS must standardize their commission claims to avoid delays. The single-channel rule means no double-dipping: GoI payments already received will be clawed back. Banks need to re-submit claims if already paid, and ensure no brokerage/commission from small savings agents is included.
What you must do
- Submit quarterly claims for PPF and SCSS using the new formats (Annex I, II, III) to the respective PADs or CAS, Nagpur.
- File arrears for commission due up to March 31, 2007 by June 10, 2007.
- Get claims certified by auditors/concurrent auditors confirming no ineligible items.
- Re-submit fresh claims if you have already submitted or received payment from RBI.
- Do not include brokerage/commission paid to small savings agents in your claim.
Who it affects
Agency banks handling PPF and SCSS (e.g., SBI, associate banks, public sector banks, ICICI Bank), RBI's Public Accounts Departments (PADs) and Central Accounts Section (CAS), Nagpur, Government of India (GoI) for remuneration recovery
What is the deadline for submitting arrears of agency commission?
Arrears for commission due up to March 31, 2007 must be submitted by June 10, 2007.
How should claims be structured?
Claims must be prepared for each quarter separately using the formats in Annex I (PPF) and Annex II (SCSS), with a summary in Annex III.
What happens if a bank already received GoI remuneration?
Any remuneration already paid by GoI for the period after July 1, 2005 (PPF) or April 1, 2006 (SCSS) will be recovered by RBI, as only one channel of commission is payable.