The Reserve Bank of India (RBI), through Notification RBI/2025-26/57 dated June 16, 2025, has revised the agency commission rates payable to agency banks, as part of a review of the Master Circular on Conduct of Government Business – Payment of Agency Commission (originally issued on April 1, 2025). Under the revised structure effective from April 1, 2025, agency banks will receive ₹40 per transaction for government receipts handled in physical mode and ₹12 per transaction for receipts in electronic mode. Pension payments will be compensated at ₹80 per transaction, while other payment transactions (excluding pensions) will earn 7 paise per ₹100 of turnover. Additionally, the RBI has clarified that agency commission will be applicable on all payment transactions, except those that are pre-funded or where the government already provides compensation. Paragraphs 13 and 8(c) of the original master circular have been amended to reflect these changes, while all other instructions remain unchanged. This revision aims to standardize remuneration for agency banks handling government business and aligns compensation more closely with the mode and type of transactions handled.
Reserve Bank of India
India’s Central Bank
Notifications
Review of instructions issued vide Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission
RBI/2025-26/57
CO.DGBA.GBD.No.S168/31-12-011/2025-2026 Dated: June 16, 2025
All Agency Banks
Madam /Dear Sir,
Review of instructions issued vide Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission
Please refer to our Master Circular on Conduct of Government Business by Agency Banks – Payment of Agency Commission dated April 01, 2025 related to claiming of agency commission.
2. The agency commission rates have been since reviewed and stands revised. Accordingly, paragraph 13 of the above-mentioned master circular may be read as follows:
Rates for agency commission:
13. As per agency bank agreement, RBI pays agency commission at rates determined by it. The rates applicable with effect from April 1, 2025 are as under:
| Sr. No. | Type of Transaction | Unit | Revised Rate | |
| a. | (i) | Receipts – Physical mode | Per transaction | ₹40/- |
| (ii) | Receipts – e-mode | Per transaction | ₹12/- | |
| b. | Pension Payments | Per transaction | ₹80/- | |
| c. | Payments other than Pension | Per ₹100 turnover | 7 paise per ₹100 | |
3. In addition to the above, it has been decided that agency commission may be paid on all payment transactions handled by the agency banks, except those which are pre-funded or where some compensation is paid by the Governments to the agency banks. Accordingly, para 8 (c) of the abovementioned circular may be read as follows:
4. Payments which are pre-funded or where some compensation is paid by the Government concerned’
5. All other instructions of the said Master Circular remain unchanged.
Yours faithfully
(Subhash Chand)
General Manager
