June
16, 2004
Jyestha 26, 1926 (S)
The General Manager
Government Accounts
Department
(14 Nationalised Banks, State Bank of India & its 7 Associate
Banks)
Dear Sir,
Public Provident Fund 1968 - Payment of Turnover
Commission on interest liability as on 31st March each year
Please
refer to our circular letter No.GA.31.12.002/1710/1992-93 dated 2nd April 1993
(copy enclosed) in terms of which agency banks were advised to desist from the
practice of claiming Turnover Commission on the amounts included in interest credit
and interest debit scrolls dated 31st March each year.
2.
During the course of inspection by the officials of the Chief Controller of Accounts,
Ministry of Finance, Government of India, New Delhi, it was observed that some
agency banks had claimed turnover commission on interest amounts on the receipt
side as well as on payment side i.e. while crediting the interest to
the individual account on the one hand and claiming its reimbursement from Reserve
Bank of India, CAS, Nagpur on the other hand. We reiterate that no turnover commission
is payable to the agency banks on the above transactions, as these are only the
notional entries.
3. You are,
therefore, requested to issue necessary instructions to the branches concerned
to ensure that claims for turnover commission under PPF 1968 on
the amounts of the interest credit and interest debit scrolls dated 31st March
each year are not submitted to Reserve Bank of India offices / CAS, Nagpur in
future.
4. Please acknowledge receipt.
Yours
faithfully,
(B.B. Sangma)
General
Manager