Reserve Bank of India [Conduct of Government Business by Agency Banks (ABs) – Payment of Agency Commission and Oversight of ABs] Directions, 2026
UR
- Applies toAgency banks handling government business
- StatusIn force
- IssuedApril 30, 2026
- Amendmentsnone tracked
- Length30 points in 5 sections · 3 min read
The four dates on this rule
- PublishedApril 30, 2026The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyApril 30, 2026The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
Kept in your browser only. Your desk
Show me the points for
Nothing is removed from the page.
Numbers to remember
| April 30, 2026 | These Directions were issued on April 30, 2026. RBI Opening paragraphs |
| 90 days | Central government transactions reported more than 90 days late need the Ministry's approval first. RBI Para 20 |
| April 1, 2025 | These agency commission rates have applied since April 1, 2025. RBI Para 22 |
| 60 days | Banks must send their commission claims to RBI within 60 days after the quarter ends. RBI Para 27 |
| five percent | When two banks share a government transaction, they split the commission seventy-five to twenty-five percent. RBI Para 35 |
| four working days | Pension must reach the pensioner's account in the last four working days of the month. RBI Para 44 |
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Opening paragraphs
1. Date of issue
These Directions were issued on April 30, 2026.
2. RBI as government banker
RBI acts as banker to the Central and State Governments under the RBI Act, 1934.
3. One commission rulebook
This document sets one rulebook for how RBI pays banks commission for government banking work.
Chapter I. Preliminary
1. Start date
The Directions took effect immediately when RBI issued them, unless stated otherwise.
2. Who is covered
These Directions apply to every bank RBI has appointed as an Agency Bank.
3. Meaning of Agency Banks
Agency Banks are all public sector banks, plus the scheduled private banks, payments banks and small finance banks appointed by RBI.
Chapter II. Agency Business Arrangement - Appointment of ABs
1. Where to take queries
Queries on reporting to the Reserve Bank go to DGBA and the Central Accounts Section, Nagpur.
Chapter III. Payment of Agency Commission for Conduct of Government Business by ABs
Must know
1. 90-day late reporting
Central government transactions reported more than 90 days late need the Ministry's approval first.
BankPulse example. A bank reports a central government transaction 120 days after it happened. The gap is more than 90 days. So the bank must first obtain the Ministry's approval and give it to the Reserve Bank.
2. Rates since April 2025
These agency commission rates have applied since April 1, 2025.
3. 60-day claim deadline
Banks must send their commission claims to RBI within 60 days after the quarter ends.
4. 14-transaction pension cap
A bank cannot claim commission for more than 14 pension transactions per pensioner in a year.
5. Commission sharing split
When two banks share a government transaction, they split the commission seventy-five to twenty-five percent.
Do it
6. Report to CAS daily
All receipts, payments, penalty and interest must be reported to Central Accounts Section every day.
7. Late claim explanation
A bank filing a late claim must attach a formal explanation for the delay.
8. Inspector claim checks
Bank inspectors and auditors must check every agency commission claim during their inspections.
Background
9. Own-tax payments excluded
Banks get no commission for paying their own taxes through their own branches.
10. Physical receipt rate
Banks earn 40 rupees commission for every physical-mode government receipt transaction.
11. Electronic receipt rate
Electronic-mode government receipts earn banks 12 rupees per transaction, much less than physical mode.
12. Pension payment rate
Banks earn 80 rupees commission for every pension payment transaction they process.
13. Non-pension payment rate
Non-pension payments earn banks 7 paise commission for every 100 rupees paid out.
14. One challan, one transaction
A single challan counts as one transaction for commission, even if it credits several tax heads.
15. Wrong-claim penal interest
Banks pay penal interest at the Bank Rate plus 2% on any wrong commission claim RBI has settled.
Chapter IV. Oversight of Government Business in ABs
1. Audit confirmation duty
Concurrent and internal audit must confirm government business is run as RBI and the Government require.
2. Checklist for auditors
A checklist covering the items at Annex 6 must be given to inspecting officers and auditors.
Chapter V. Repeal and other provisions
Must know
1. Pension credit timing
Pension must reach the pensioner's account in the last four working days of the month.
Background
2. Older rules repealed
This document repeals every earlier RBI instruction on Agency Bank government business listed in its annex.
3. Old actions preserved
Anything already done under the old rules stays governed by those old rules.
4. Approvals carried over
Approvals given under the cancelled rules are now treated as given under these rules.
5. Other laws still apply
These Directions add to other laws. They do not replace any of them.
6. RBI's reading final
RBI's interpretation of any part of these Directions is final and binding.