Home › Circulars › RBI/2011-12/570

Revised Agency Commission for Government Transactions

Current · Source: Reserve Bank of India · RBI/2011-12/570 · issued 22 May 2012 · ~2 min read

Quick answerRBI has revised agency commission rates for banks handling government transactions, effective July 1, 2012. Physical receipts commission rises to ₹50, e-mode receipts drop to ₹12, pension payments go to ₹65, and other payments fall to 5.5 paise per ₹100 turnover.

The rule, in the simplest words

Banks handling government transactions will earn more per physical receipt and pension payment.
Banks will earn less for e-mode receipts and other payments.
The new commission rates aim to incentivize digital transactions by lowering costs for e-mode receipts.

How it plays out — a real example

An agency-banking (government business) officer in Indore, Mr. Kumar, noticed that the bank's commission income from e-mode receipts decreased significantly after the RBI revised the agency commission rates. However, the bank's income from physical receipts and pension payments increased, making up for the loss. Mr. Kumar adjusted the bank's strategy to focus on promoting digital transactions to minimize the impact of the reduced commission rates.

What changed

RBI revised the agency commission structure for government business handled by agency banks, effective July 1, 2012. Physical mode receipts commission increased from ₹45 to ₹50 per transaction, while e-mode receipts commission was slashed from ₹45 to ₹12 per transaction. Pension payments commission rose from ₹60 to ₹65 per transaction, and commission on other payments (non-pension) was reduced from 9 paise to 5.5 paise per ₹100 turnover.

What it means for you

Banks will earn more per physical receipt and pension payment but significantly less for e-mode receipts and other payments. This incentivizes digital transactions by lowering costs for e-mode receipts, aligning with the push for electronic government collections. Banks handling high volumes of non-pension payments or e-mode receipts may see reduced commission income, while those with more physical receipts or pension payments could benefit.

What you must do

Update internal systems to apply the new commission rates from July 1, 2012.
Train staff on the revised rates, especially the distinction between physical and e-mode receipts.
Review transaction volumes to assess impact on agency commission income.
Communicate changes to relevant branches handling government business.

Who it affects

All agency banks appointed under Section 45 of the RBI Act, 1934, Branches handling government receipts and payments, Treasury and operations teams managing government transactions

❓ Common questions

Regulatory timeline

Stated effective date effective July 1, 2012
Decoded by BankPulse 2026-06-18 20:19 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What qualifies as an e-mode receipt?

E-mode receipts include transactions where funds are remitted from the remitter's bank account via internet banking, or any transaction that does not involve physical receipt of cash or instruments.

When do the revised rates take effect?

The revised agency commission rates are effective from July 1, 2012, and will remain valid until the next review by RBI.

Why was the e-mode commission reduced so sharply?

RBI aimed to encourage digital transactions by lowering the cost for electronic receipts, reflecting lower processing costs and promoting efficiency in government collections.

📜 Read the original circular — full text as issued by RBI

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications Withdrawn with effect from November 16, 2021, February 18, 2022, May 02, 2022, May 13, 2022, May 21, 2024, July 12, 2024 & October 01, 2024 ( 661 kb ) Rationalisation and Revision of Agency Commission Payable to Banks on Government Transactions RBI/2011-12/570 DGBA.GAD.No.7575/31.12.011/2011-12 May 22, 2012 The Chairman and Managing Director/Chief Executive Officer All Agency Banks Madam / Dear Sir, Rationalisation and Revision of Agency Commission Payable to Banks on Government Transactions As you are aware, Reserve Bank of India (RBI) carries out the general banking business of the Central and State Governments through its own offices and through the offices of the Agency Banks appointed under Section 45 of the RBI Act, 1934, by mutual agreement. RBI pays agency commission (also called turnover commission) to the Agency Banks for the Government business handled by them. As per paragraph 5 of the Agency Bank agreement, RBI pays agency commission at a rate determined by it. In terms of this provision, agency commission rates are reviewed from time to time. The existing agency commission rates have been operative since July 01, 2005. 2. In a dynamic banking scenario, several factors/ developments influence the cost / mechanism of agency business arrangement. Taking all these factors into consideration, RBI had held detailed consultations with major public and private sector agency banks in the recent months, based on the recommendations made by a Committee set up in this regard. Accordingly, it has now been decided to prescribe a revised agency commission rate structure as under:- Sl. No. Type of transaction Unit Existing Rate Revised Rate 1 (i) Receipts – Physical mode Per transaction ₹ 45 ₹ 50 (ii) Receipts – e-mode Per transaction ₹ 45 ₹ 12 2 Pension Payments Per transaction ₹ 60 ₹ 65 3 Payments other than Pension Per ₹ 100 turnover 9 paise 5.5 paise 3. In this context, it may please be noted that ‘Receipts – e-mode transactions’ indicated against Sl No. 1(ii) in the above table would refer to those transactions involving remittance of funds from the remitter’s bank account through internet banking as well as all such transactions which do not involve physical receipt of cash / instruments. 4. The revised rates will be effective from July 01, 2012, and will remain valid till the next review. Yours faithfully (A.K.Bera) Chief General Manager-in-Charge 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn &copy; Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/570 · issued 22 May 2012. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

🏦 Branch Manager

Communicate changes to relevant branches handling government business.

💻 IT / Systems

Update internal systems to apply the new commission rates from July 1, 2012.

📜 Compliance

Train staff on the revised rates, especially the distinction between physical and e-mode receipts.
Review transaction volumes to assess impact on agency commission income.

Grouped from the action items above — a single circular may involve more than one team.

Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (All agency banks appointed under Section 45 of the RBI Act, 1934, Branches handling government receipts and payments, Treasury and operations teams managing government transactions), your first concrete step on “Revised Agency Commission for Government Transactions” is: “Update internal systems to apply the new commission rates from July 1, 2012.” (RBI issued this 22 May 2012).

Circular: RBI/2011-12/570 -- Revised Agency Commission for Government Transactions
Issued: 22 May 2012
Action required: Update internal systems to apply the new commission rates from July 1, 2012.
Action required: Train staff on the revised rates, especially the distinction between physical and e-mode receipts.
Action required: Review transaction volumes to assess impact on agency commission income.
Action required: Communicate changes to relevant branches handling government business.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 Banker Discussion

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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=7229&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.