RBI/2007-08/76
DGBA.CDD
No H - ……….. / 13.01.299 / 2007-08
July
2, 2007
Aashadha 11, 1929 (S) The
Chairman/Managing Director
State Bank of India and Associate banks
and 17
Nationalized banks
The Managing Director
ICICI Bank Ltd / IDBI Ltd / HDFC
Bank Ltd / UTI Bank Ltd
Stock Holding Corporation of India Ltd
Dear
Sir Master
Circular on Rates of Brokerage etc. for Relief / Savings Bonds
The Department
of Government and Bank Accounts, Central Office, RBI has been issuing instructions
relating to brokerage rates for Relief / Savings bonds from time to time. In order
to enable the Offices/Agency banks to have all the currently operative instructions
on the above subject at one place, a Master Circular on
brokerage rates, etc. for Relief / Savings Bonds has been prepared, which is enclosed.
You may also access the circular on our website www.rbi.org.in
2.
Please acknowledge receipt. Yours
faithfully, (B.
K. Mishra)
General Manager
Master
Circular
Payment
& Rates of Brokerage for Savings Bonds
+Rates
of brokerage
Brokerage
at the rate of Re. 0.50 (paise fifty only) per Rs.100/- will be paid to brokers
registered/enrolled with RBI Offices, on applications tendered for investment
in the bonds in the form of BLA at RBI Offices on behalf of their clients
and bearing their stamp. No brokerage will be paid in respect of stock certificates.
Brokerage
at the rate of 1.00 (Rupee One only) per Rs.100/- will be paid to brokers registered/enrolled
with Agency banks on applications tendered for investment
in the bonds in
the form of BLA at designated branches on behalf of their clients and bearing
their stamp. (Ref.CO.DT.13.01.201/432/2000-01 dated 25-7-2000)
No
brokerage is payable in case the broker is one of the investor/applicant.
(Ref.CO.DT./13.01.298/H-2411/03-04
dated 29-10-2003) No
TDS on payment of brokerage:- Offices/agency banks may please note that
no tax is required to be deducted at source while making payment of brokerage
in respect of the Savings Bonds business canvassed by brokers in terms of Section
194(H) of the Income Tax Act, 1961.
(Ref.CO.DT.201/5900/2000-01
dated 28-5-2001 & CO.DT.13.01.298/H-3660/03-04 dt.3-1-04) Offices/Agency
Banks are advised to settle the brokerage claims expeditiously in any case not
later than 30 days from the date of subscription.
(Ref.CO.DT.13.01.201/6260/2000-01
dated13-6-2001) Agency
Banks are advised to first settle the brokerage claims and thereafter the reimbursement
be sought from the Reserve Bank of India.
(Ref.CO.DT./13.01.201/4668/2000-01 dt.8-3-2001) As
a measure towards improvement in customer service, offices/agency banks may arrange
to pay the brokerage to the agents, on a monthly basis by credit to their accounts
through ECS after obtaining requisite mandate from them.
(Ref.CO.DT.13.01.298/H-4677/2002-03 dated 23-5-2003) Reimbursement
of brokerage claims in respect of Savings Bonds have been centralized at CAS Nagpur
with effect from 1-7-2002 and it has been decided that 90% of the brokerage due
to agencies on the basis of funds remitted/reported to CAS as at the close of
business of the month will be paid on the 3rd working day of the succeeding
month.
The balance of 10% is to be settled in due course on submission of Appendix IV
(Ref.CO.DT.13.01.272/11032/2001-02 dt.25-6-2002 & CO.DT.13.01.272/H-2906
/ 2002-03 dated. 26-2-2003) In
case detailed clarifications are required on specific issues, the circulars indicated
above may please be referred to. |