Para 4.5 — CAM
Original Rule Text
4.5 AGENCY COMMISSION PAYABLE BY RBI TO BANKS ON GOVERNMENT TRANSACTIONS
4.5.1 RBI pays agency commission to banks for handling government business transactions. The agency commission rates on eligible government transactions are currently as under :-
S. No. Type of Transaction Unit Rates applicable w.e.f. 1/7/2019 1 Receipts - Physical per transaction ₹40/- 2 Receipts – e-mode per transaction ₹9/- 3 Pension Payments per transaction ₹75/- 4 Payments other than Pension per ₹100 turnover ₹ 6.50 paise
(Authority: Circular No. DGBA. GBD. 3144/31.02.007/2018-19 dated June 20, 2019 issued by Department of Government and Bank Accounts and circulated vide CGA’S OM No. S11012/3(35)/TOC/2016/RBI /GBA /1151-1199 dated 12-7-2019).
4.6: PROCEDURE FOR LEVYING PENAL INTEREST ON ACCREDITED BANKS IN RELATION TO GOVERNMENT AGENCY BUSINESS:
4.6.1 Payment of interest on excess put through/double claim by the accredited bank: PAOs need to initiate action with FPB for recovery of penal interest on excess put through/double
claim by the accredited bank and send the requisite reports to Principal Accounts Office for consolidation and onward transmission to O/o CGA in accordance with the procedure laid down in para 13.6 (21) of CAM.
4.6.2 Payment of interest on delayed remittances: All challans pertaining to receipts should be scrutinized to detect cases of delays in remittance beyond the maximum period allowed for remittance. These delays should be investigated to ascertain whether they occurred at the receiving branch or the nodal /FPB branch of the bank. A record of all such cases of delayed remittance should be kept in the PAO, for calculation, levy and recovery of penal interest.
4.6.3 Calculation of Delay: ‘T’ is the date of Transaction which will be counted from the date of receipt in case of cash payment, and date of realization in case of cheques/ drafts at the receiving branch. Delayed period interest shall be imposed on the banks for the actual delayed period and not from the date of transaction (T). In other words, the delay period' calculation will start from the day following the prescribed put through date (actual "Put through date will be included for calculation of delay). Concerned Account Offices will identify cases of delay and inform their headquarters. All cases of recovery will be processed by the PAO and quarterly report will be submitted to their HQ for taking up the matter with the Head Office of the Banks.
(A) For manual receipts:
4.6.4 Timelines for credit of government revenues:
What This Means
This para details the agency commission that RBI pays to banks for handling government transactions, and the procedure for levying penal interest on banks that delay remitting government receipts. Agency commission rates (since July 2019) are: Rs 40 per physical receipt transaction, Rs 9 per electronic receipt, Rs 75 per pension payment, and 6.50 paise per Rs 100 turnover for other payments. For penal interest on delayed remittances, the timeline is T+1 (next working day) for both manual and electronic receipts (T+2 for North Eastern States). Penal interest is charged at Bank Rate + 2% for transactions of Rs 1 lakh or above, and at Bank Rate for delays up to 5 days for smaller transactions. Petty claims of Rs 500 or below per transaction are ignored. Banks must pay penal interest within 3 months of receiving the claim.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Agency commission rates: Rs 40 (physical receipt), Rs 9 (e-receipt), Rs 75 (pension), 6.50 paise per Rs 100 (other payments)
- 2Remittance timeline: T+1 for all receipts (T+2 for North Eastern States), where T is the date of receipt/realization
- 3Penal interest: Bank Rate + 2% for transactions of Rs 1 lakh and above; Bank Rate alone for smaller amounts delayed up to 5 days
- 4Petty penal interest claims of Rs 500 or below per transaction are excluded
- 5Banks must pay penal interest within 3 months of receiving the claim from the Ministry/Department
Practical Example
A government department deposits Rs 5 lakh in tax receipts at the bank branch on Monday (T). The bank is required to remit it to the government account by Tuesday (T+1). If the bank delays and remits it on Thursday, there is a 2-day delay beyond the permitted timeline. The PAO calculates penal interest at Bank Rate + 2% (since the amount exceeds Rs 1 lakh) for the 2 delay days and raises a claim on the bank's head office through the Pr.CCA. The bank must pay within 3 months. If the bank disputes the calculation, it forwards the case to the GBA section of CGA for committee resolution.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is T+1 in the context of government receipts?▼
Are bank staff strikes excluded from delay calculation?▼
How is penal interest on delayed remittances reported?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.