RBI's own words: “Please refer to our master circular RBI/2010-11/87 dated July 01, 2010” — RBI/2011-12/99
Source: Reserve Bank of India · RBI/2010-11/87 · issued 01 Jul 2010 · ~2 min read
Quick answerRBI updated its master circular on direct tax collection through OLTAS, incorporating instructions issued up to end-June 2010. Agency banks must follow revised procedures for accepting, accounting, and reporting CBDT dues, including token issuance, secure handling of receipted challans, and adherence to the 4-5 day waiting period for receipted challans.
The rule, in the simplest words
Banks must follow the new master circular RBI/2010-11/87, which replaces the July 2009 version and includes all instructions issued up to the end of June 2010 for collecting direct taxes.
Every taxpayer who pays a direct tax at a bank must receive a paper token (a receipt) immediately, and the bank must keep the original challan (payment slip) safe and not let customers take it.
The bank must hand over the receipted challan to the tax authorities within 4‑5 days after the customer pays, following local clearing arrangements.
Banks should stop collecting taxes that are no longer required: Fringe Benefit Tax (ended for Assessment Year 2010‑11) and Banking Cash Transaction Tax (withdrawn on April 1 2009).
All staff at authorized branches must be trained on these rules and the importance of timely remittance and secure document handling.
How it plays out — a real example
Riya, a branch manager in Jaipur, receives a direct tax payment from a customer. She gives the customer a paper token, keeps the challan in a locked drawer, and ensures the challan is forwarded to the tax office within five days. She also reminds her team that Fringe Benefit Tax is no longer collected.
What changed
RBI issued an updated master circular (RBI/2010-11/87) replacing the July 2009 version, incorporating all instructions issued till end-June 2010. The circular reiterates the existing framework for direct tax collection, including the major heads of account and the requirement for banks to issue paper tokens as acknowledgment of payments, and emphasizes the 4-5 day waiting period for receipted challans.
What it means for you
Banks must ensure strict compliance with the consolidated instructions, particularly the issuance of tokens, secure handling of receipted challans, and adherence to the 4-5 day waiting period. Non-compliance could lead to customer grievances and regulatory scrutiny. The circular also clarifies that Fringe Benefit Tax has been abolished from assessment year 2010-11 and Banking Cash Transaction Tax withdrawn from April 1, 2009.
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
Review and implement the updated master circular instructions across all authorized branches.
Ensure every taxpayer receives a paper token as acknowledgment at the time of payment.
Secure receipted challans properly—do not keep them in open boxes or allow customers to pick them freely.
Make receipted challans available within 4-5 days based on local clearing arrangements.
Update internal systems to stop accepting Fringe Benefit Tax (abolished from AY 2010-11) and Banking Cash Transaction Tax (withdrawn from April 1, 2009).
Train branch staff on the revised procedures and the importance of timely remittance and document dispatch.
Who it affects
All agency banks handling direct tax collections, Branch managers and tellers at authorized branches, Taxpayers depositing direct taxes at bank branches
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the key change in this master circular compared to the 2009 version?
The circular updates the master circular by incorporating all instructions issued by RBI up to end-June 2010. It consolidates existing instructions for easier reference, with emphasis on token issuance, secure handling of challans, and the 4-5 day waiting period for receipted challans.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “Please refer to our master circular RBI/2010-11/87 dated July 01, 2010”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/87
DGBA.GAD.No. H. 1 /42.01.034/2010-11
July 1, 2010
To
All Agency Banks
Dear Sir/Madam,
Master Circular – Collection of Direct Taxes- OLTAS
Please refer to our master circular RBI/2009-10/60 dated July 01, 2009 on the above subject which was issued with a view to facilitate quick reference to all the extant instructions issued on the subject at one place. We have now updated the master circular incorporating important instructions issued by us till end June, 2010. A copy of the same is enclosed for your information. This circular may also be downloaded from our website www.mastercirculars.rbi.org.in .
2. Please acknowledge receipt.
Yours faithfully
(B. K. Mishra)
General Manager
Encl: As above
Master Circular on Collection of Direct Taxes
Introduction
The Central Board of Direct Taxes (CBDT) is responsible for administering various direct taxes through the Commissioners of Income-tax located in different parts of the country. The Commissioners of Income-tax are entrusted with the task of collection as well as refund of Income-tax and Corporation Tax, etc. under the Income-tax Act, 1961.
2. The Principal Chief Controller of Accounts (Pr.CCA) is the apex authority of the accounting organisation of the Central Board of Direct Taxes. Under the Departmentalised set up, the Pr.CCA, CBDT has been assigned the functions relating to accounting of all receipts and refunds pertaining to the Direct Taxes. The Pr.CCA sits at New Delhi and operates through Zonal Accounts Offices (ZAOs) across the country. Presently there are 24 ZAOs located at various places.
3. Major Heads of Account
The various types of direct taxes collected by the Income Tax Department are classified under the following Major Heads :
i)
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/87 · issued 01 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=5841&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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