RBI/2006-07/408
DGBA.CDD. H
- 16532/15.15.001/2006-07
May 21, 2007
The
General Manager
Government Accounts Department, Head Office
State Bank of
India / State Bank of Indore / State Bank of Patiala
State Bank of Bikaner
& Jaipur / State Bank of Saurashtra
State Bank of Travancore / State Bank
of Hyderabad / State Bank of Mysore
Allahabad Bank / Bank of Baroda / Bank
of India / Bank of Maharashtra/
Canara Bank / Central Bank of India / Corporation
Bank / Dena Bank / Indian Bank/
Indian Overseas Bank / Punjab National Bank
/ Syndicate Bank /UCO Bank /
Union Bank of India / United Bank of India / Vijaya
Bank / ICICI Bank Ltd
Dear Sir,
Agency
Commission - Public Provident Fund Scheme, 1968 (PPF)
and Senior Citizens Savings
Scheme, 2004 (SCSS) - Clarifications
Please
refer to our Circular No. RBI/2006-07/289
dated March 16, 2007 conveying the decision to pay only one channel of agency
commission to Agency banks handling PPF and SCSS. While our Regional Offices (PADs-Public
Accounts Departments) / Central Accounts Section (CAS), Nagpur have received claims
from some banks under the new dispensation, a few banks have sought clarification
on various aspects of agency commission.
2.
With a view to bringing uniform practice in claiming agency commission which would
facilitate our PADs / CAS to settle the claims expeditiously, we advise you as
under:
i) Agency banks may submit
their claims in the Formats enclosed (Annex I , Annex
II). The claims should be prepared for each quarter separately and a summary
of the claim may be submitted as per Annex III.
ii)
Agency commission is payable on PPF w.e.f. July 1, 2005 and on SCSS from April
1, 2006.
iii) Claim for arrears of
agency commission due upto March 31, 2007 shall be submitted by Agency banks latest
by June 10, 2007.
iv) In case of
PPF, there is no change in reporting arrangements and the Agency banks are required
to submit their claims to the concerned PADs or CAS, Nagpur, as was being done
earlier. As regards SCSS, all the Agency banks are required to submit the claim
to CAS, Nagpur.
v) Claims for agency
commission shall be certified by Auditors / Concurrent Auditors of the Agency
banks to the effect that no ineligible item is included and the claim is made
as per extant instructions of RBI.
vi)
A few banks have already received remuneration on PPF& SCSS accounts from
Government of India (GoI) for the period after July 1, 2005 and April 1, 2006
respectively. Since there will be only one channel of agency commission payable,
the remuneration if any already paid by GoI will be recovered by the Bank.
vii)
Brokerage / Commission paid to small savings agents for mobilising deposits under
the two schemes will be reimbursed by GoI as hitherto, hence and the same should
not be claimed as a part of the agency commission payable by the Bank.
viii)
Those banks which have already submitted claims / received payment from the Bank
are advised to furnish a fresh claim as indicated in this Circular.
3.
Please acknowledge receipt.
Yours
faithfully,
(Imtiyaz Ahmad)
Assistant General Manager
Annex
- I