Agency Commission for PPF and SCSS Transactions Revised
No longer current — replaced by RBI/2025-26/57 Master Circular on Agency Commission
Source: Reserve Bank of India · RBI/2006-2007/289 · issued 16 Mar 2007 · ~2 min read
Quick answerRBI will pay agency commission for PPF and SCSS transactions at revised rates: Rs.45 per receipt and 9 paise per Rs.100 turnover on payments, effective July 1, 2005 for PPF and April 1, 2006 for SCSS. Government will stop separate remuneration.
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.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
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
❓ Common questions
Regulatory timeline
Stated effective dateeffective July 1, 2005
Decoded by BankPulse2026-06-19 17:45 IST
Superseded by — RBI/2025-26/57 Master Circular on Agency Commission
Status change: superseded10 Jul 2026, 04:04 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
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.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Superseded byRBI/2025-26/57 Master Circular on Agency Commission
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/289
DGBA.GAD.H-14024/31.12.010/2006-07
March 16, 2007
The Chairman and Managing Director / Managing Director
State Bank of India and its Associates / Allahabad Bank / Bank of Baroda / Bank of India / Bank of Maharashtra/ Canara Bank / Central Bank of India / Corporation Bank / Dena Bank / Indian Bank/ Indian Overseas Bank / Punjab National Bank / Syndicate Bank /UCO Bank /Union Bank of India / United Bank of India / Vijaya Bank / ICICI Bank Ltd
Dear Sir,
Agency Commission - Public Provident Fund Scheme, 1968 (PPF) and Senior Citizen Savings Scheme 2004 (SCSS).
Please refer to para 3 of our Master Circular RBI/2006/77 and Ref No. DGBA.GAD.No.1052/31.12.010/2006-07 dated July 19, 2006 on payment of agency commission wherein it was indicated that a separate communication will follow on continuance of payment of agency commission on Public Provident Fund Scheme, 1968.
2. The issue of payment of agency commission by Reserve Bank of India for handling PPF and SCSS was examined in consultation with Government of India. The issue was also discussed with select banks in January 2006.
3. It has now been decided to follow only one channel of payment of remuneration to banks for handling transactions under PPF and SCSS. Accordingly, Reserve Bank of India will pay agency commission on transactions relating to PPF and SCSS at the following rates;
a) Receipts - Rs.45/- per transaction
b) Payments - 9 paise per Rs.100/- turnover
With the revision of the rates as above, Government of India will discontinue the payment of remuneration for managing PPF and SCSS.
4. The above rates will be applicable from July 1, 2005 for PPF transactions and from April 1, 2006 for SCSS transactions.
5. There will not be any change in the existing arrangement for payment of commission paid at source to small savings agents for mobilizing deposits under the two schemes and Government will continue to reimburse the said commission as hitherto.
6. Agency banks may submit their claims to CAS, Nagpur or Public Accounts Department of RBI, as the case may be.
Yours faithfully,
(M. T. Varghese)
General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/289 · issued 16 Mar 2007. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3350&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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