The Reserve Bank of India (RBI) has increased the agency commission for banks conducting government business such as revenue receipts and payments, pension payments, among others.
This is possibly aimed at encouraging the agency banks to bring in more efficiency in putting through government-related transactions.
The revised agency commission rate for banks putting through revenue receipt and payment transactions on behalf of the Central/State Governments in electronic (e-) mode has been upped to ₹12 per transactions against ₹9.
However, the commission rate for revenue receipt and payment transactions in the physical mode remains unchanged at ₹40 per transaction.
In the case of pension payments in respect of Central / State Governments, the agency commission has been increased to ₹80 per transaction against ₹75.
In the case of payments other than pension, the agency commission stands upped to 7 paise per ₹100 turnover from 6.5 paise. RBI said the revised agency commission rates will be applicable from April 1, 2025.
The central bank also said commission may be paid on all payment transactions handled by the agency banks, except those which are pre-funded or where some compensation is paid by the governments to the agency banks.