Reserve Bank of India

13.08.2015

Banking

Conduct of Government Business by Agency Banks - Payment of Agency Commission

MANU/RMIC/0341/2015

The Reserve Bank of India issued a clarification on activities that do not come under the purview of agency bank business and are not eligible for payment of agency commission. Some such activities notified are: furnishing of bank guarantees/security deposits through private sector banks by government contractors/suppliers; banking business of autonomous/statutory bodies; capital payments by governments for losses incurred by autonomous/statutory bodies; and, prefunded schemes implemented by Central Ministry/Department or State Department without reference to the RBI.

Relevant

Master Circular - Agency Commission on conduct of Government Business MANU/RMIC/0324/2015

Tags : agency commission government business banks

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