What changed
RBI consolidated all agency commission instructions into a master circular effective July 2, 2007, updating the previous version from July 2006. The key change was shifting commission from turnover-based to transaction-based rates for receipts and pension payments, effective July 1, 2005. For PPF and SCSS, RBI now pays commission directly, replacing Government of India's separate remuneration, with specific formats for claims.
What it means for you
Banks must now track individual transactions for receipts and pension payments to claim commission, rather than relying on turnover value. This requires robust record-keeping and daily branch scroll reconciliation. The single-channel payment for PPF and SCSS simplifies claims but demands strict adherence to prescribed formats and deadlines.
What you must do
- Maintain transaction-level records for receipts and pension payments to support commission claims.
- Use daily branch scrolls to calculate transaction counts, excluding error scrolls and own statutory tax transactions.
- Submit PPF and SCSS commission claims in Annex I, II, and III formats, including arrears from July 1, 2005 (PPF) and April 1, 2006 (SCSS), by June 10, 2007.
- Ensure quality of service, especially for pensioners, as RBI will monitor performance.
Who it affects
All agency banks handling government business, Branches processing receipts, payments, and pension transactions, Banks managing PPF and SCSS accounts
What is the new commission rate for pension payments?
Pension payments earn Rs.60 per transaction, effective July 1, 2005, based on transaction count from daily branch scrolls.
How do I claim commission for PPF and SCSS transactions?
Use the prescribed formats in Annex I, II, and III of the circular. Claims must be submitted to RBI by June 10, 2007, including arrears from July 1, 2005 for PPF and April 1, 2006 for SCSS.
Are error scroll transactions eligible for agency commission?
No, transactions reported in error scrolls are not eligible for agency commission.