RBI Sets Norms for Agency Banks Handling Government Business

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  • Last Updated on 4 May, 2026

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RBI agency banks commission norms

Notification No. CO.DGBA.GBD.No.S44/31.02.007/2026-27, Dated: 30.04.2026

The Reserve Bank of India (RBI) has laid down a comprehensive framework governing the conduct of Government business by Agency Banks, covering agency commission, operational norms, and oversight mechanisms.

1. Scope of the Framework

  • Applicable to agency Banks handling Government transactions
  • Covers:
    1. Collection and payment services
    2. Commission claims and compliance requirements

2. Key Provisions

2.1 Eligible and Ineligible Transactions

The framework clearly defines:

  • Transactions eligible for agency commission
  • Transactions excluded from commission claims

2.2 Agency Commission Structure

  • Specifies applicable commission rates for different Government transactions
  • Ensures uniformity and clarity in remuneration to banks

2.3 Timelines for Claims

  • Banks must submit agency commission claims within prescribed timelines
  • Delays may impact eligibility for reimbursement

2.4 Reporting Requirements

Banks are required to:

  • Maintain accurate records
  • Submit periodic reports to RBI

2.5 Audit and Oversight

  • The framework mandates audit checks and verification processes
  • Ensures:
    1. Proper utilisation of public funds
    2. Compliance with regulatory norms

3. Accountability and Penal Provisions

  • Banks are responsible for accuracy of commission claims
  • In case of incorrect or excess claims
  • RBI may levy penal interest

4. Objective of the Framework

The directions aim to:

  • Enhance transparency and accountability
  • Ensure efficient handling of Government transactions
  • Strengthen financial discipline among Agency Banks

5. Conclusion

The framework establishes a structured and accountable system for Agency Banks, ensuring that Government business is conducted with accuracy, compliance, and proper oversight, while safeguarding public funds.

Click Here To Read The Full Notification

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied