Saturday, January 23, 2016

Payment of Agency Commission on pension accounts



Agency banks are being compensated at Rs. 65 per transaction for handling pension computation, payment and related services. As per norms, a pensioner’s account should not have more than 14 credit transactions in a calendar year (one monthly credit for payment of net pension and a maximum of two per year for payment of arrears on account of increase in DR, if applicable.).

It is also reiterated that cases involving payment of arrears on account of late start/restart of pension qualifies as a single transaction for claiming of agency commission.

Some of the Central Government Departments and State Governments prefer to compute the pension figures on their own and pass them on to banks for payment.Such transactions may be included under non-pension payments, on which agency commission is payable on a turnover basis as per the existing norms (currently at 5.5 paise per Rs. 100/-).

Based on RBI Circular dt 21/01/16. Please visit www.rbi.org.in for any further clarification if required…..   Poppy