RBI/2007-08/123
DGBA.GAD.No.H 2206 /31.03.011/2007-08
August
28, 2007
To
The
Chairman & Managing Director/ Managing Director
All
Agency banks
Dear
Sir,
Remittance
facility for Government transactions
As
per extant instructions, the remittance needs of the Government Departments are
to be met by the concerned accredited agency bank free of cost. However, information
collected from banks reveal that service charges are being levied by most of the
agency banks for effecting remittance transactions of Government through ECS,
EFT, NEFT, RTGS etc. In this connection, we reiterate that remittance transactions
by accredited banks by whatever mode form part of agency transactions and has
to be effected free of charge. Further, RBI has not been charging any fee from
banks for ECS/EFT/NEFT and RTGS transactions.
2.
It is, therefore, advised that all agency banks should provide remittance facility
to Ministries/ Departments of Central and State Governments to which they are
accredited free of cost at their authorised branches, irrespective of the
mode of such remittance.
Yours
faithfully
(M.T.Varghese)
General
Manager