Are Agency banks compensated for conduct of Central/State Government business?
The accredited banks are paid remuneration by RBI for conduct of State/Central Government transactions. Such remuneration is called Agency Commission. The rates of agency commission applicable at present (from 1.7.2005) are as under:
1. Receipts Rs. 45 per transaction
2. Payments other than pension, 9 Paise per Rs. 100/- turnover
3. Pension Payment Rs. 60 per transaction