What changed
RBI has decided to pay agency commission for PPF and SCSS transactions through a single channel, replacing the earlier dual payment system. The revised rates are Rs.45 per receipt transaction and 9 paise per Rs.100 turnover on payments. Government of India will discontinue its separate remuneration for managing these schemes.
What it means for you
Banks handling PPF and SCSS will now receive commission only from RBI at the new rates, simplifying the payment process. The change applies retrospectively from July 1, 2005 for PPF and April 1, 2006 for SCSS, so banks may need to reconcile past claims. Existing commission paid to small savings agents remains unchanged.
What you must do
- Submit claims for agency commission to CAS, Nagpur or RBI's Public Accounts Department as applicable.
- Update internal systems to reflect the new commission rates: Rs.45 per receipt and 9 paise per Rs.100 turnover on payments.
- Ensure claims cover the retrospective effective dates: July 1, 2005 for PPF and April 1, 2006 for SCSS.
- Coordinate with Government of India to confirm discontinuation of their separate remuneration for these schemes.
Who it affects
State Bank of India and its associates, Public sector banks listed in the circular, ICICI Bank Ltd, All agency banks handling PPF and SCSS transactions
What are the new agency commission rates for PPF and SCSS?
RBI will pay Rs.45 per transaction for receipts and 9 paise per Rs.100 turnover for payments under both schemes.
From when are these rates applicable?
The rates are effective from July 1, 2005 for PPF transactions and from April 1, 2006 for SCSS transactions.
Will the Government of India continue to pay any separate remuneration?
No, with the revision, Government of India will discontinue its separate remuneration for managing PPF and SCSS. However, commission paid to small savings agents at source will continue as before.