What changed
The agency commission structure shifted from turnover-based to transaction-based for receipts and pension payments, effective July 1, 2005. For PPF and SCSS, RBI now pays agency commission at the same rates, replacing Government of India's separate remuneration. A uniform claim format was introduced for PPF and SCSS transactions.
What it means for you
Banks must maintain detailed transaction records to claim commission, as receipts and pension payments are now per-transaction. The change simplifies commission calculation but requires accurate scroll reporting. Banks should ensure error scrolls are excluded from claims, and own statutory tax transactions do not qualify.
What you must do
- Maintain transaction-level records for receipts and pension payments to support per-transaction commission claims.
- Ensure daily branch scrolls submitted to government accounting authorities are accurate, as they form the basis for transaction count.
- Exclude error scroll transactions and own statutory tax payments from agency commission claims.
- Submit PPF and SCSS commission claims in the prescribed formats (Annex I, II, III) with arrears due up to March 31, 2007, by June 10, 2007.
Who it affects
All agency banks handling government business, Banks managing PPF and SCSS transactions, Bank branches processing government receipts and payments
What is the agency commission rate for pension payments?
Pension payments earn Rs. 60 per transaction, effective from July 1, 2005.
Are error scroll transactions eligible for agency commission?
No, transactions reported in error scrolls are not eligible for agency commission.
How should banks claim commission for PPF and SCSS?
Banks must use the prescribed formats in Annex I, II, and III, and submit claims to RBI. Arrears up to March 31, 2007, were due by June 10, 2007.