Settlement of Agency transactions

Currently, some Banks are routing their agency transactions of state governments through another agency bank ( Aggregator), which in turn settles these agency transactions with RBI for both receipts and payments. Both the banks share the eligible agency commission on such transactions.

It has now been decided that all agency banks should settle their transactions for both funds and commission directly with RBI instead of routing them through the aggregator.

Agency Transaction details/scrolls may be sent directly by individual agency bank to the concerned State Government/Treasury.

The new arrangement will be with effect from January 1, 2018.

Based on RBI notification Dated 7/12/17. For any further clarification in the matter refer www.rbi.org.in ............Poppy