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RBI/2005-06/384
DGBA.GAD.No. 17585 /31.12.010(C)/2005-06
May 8, 2006
The Chairman & Managing Director /
Managing Director
State Bank of India and its Associates /
All Nationalised Banks / IDBI Ltd. /
HDFC Bank Ltd. / ICICI Bank Ltd. /
UTI Bank Ltd. / Jammu & Kashmir Bank
Ltd.
Dear Sir,
Conduct of Government Business –
Agency Commission - Revision of Rates
Please refer to our Circular DGBA.GAD.No.
379/31.12.010(C)/2005-06 dated July 25, 2005 advising about the revised
rates of agency commission payable to banks for conduct of Government business.
2. We have received representations
from agency banks stating that the present rates of agency commission do not
compensate the banks adequately and that there has been reduction in the commensurate
commission receivable by them. The agency banks have particularly highlighted
the fact that the banks remain out of funds for a few days on account of high
value payments on behalf of the Government.
3. We have since made a review
of the existing rates and it has been decided to revise the rates as under :
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Existing Rates
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Revised Rates
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a)
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Receipts
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:
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Rs.45/- per transaction
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No change
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b)
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Pension payments
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:
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Rs.60/- per transaction
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No change
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c)
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Other payments
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:
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Rs.50/- per transaction
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9 paise per Rs.100/- turnover
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4. The above rates shall be
effective from July 1, 2005.
5. Please acknowledge receipt.
Yours faithfully,
sd/-
(Prabal Sen)
Chief General Manager-in-Charge
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