**Policy Summary: Agency Commission - Furnishing Reconciliation Certificate**
This Reserve Bank of India (RBI) circular, reference number RBI/2019-20/69 DGBA.GBD.No.6483/31.12.007/2019-20 dated September 25, 2019, addresses the submission of reconciliation certificates for agency commission claims by agency banks.
The circular modifies the requirements outlined in Circular No. RBI/2019-20/21 DGBA.GBD.No.53/1.02.007/2019-20 dated July 31, 2019. Agency banks are now required to submit Annex B of the aforementioned circular, duly certified by Chartered Accountants or Cost Accountants, when claiming agency commission. A revised Annex B is enclosed with the circular.
Annex A remains unchanged, as does the requirement for a certificate from the Executive Director (ED) / Chief General Manager (CGM) in charge of government business confirming the absence of pension arrears or delays in crediting regular pension.
Annex B requires certification of the accuracy of the agency commission claimed, based on an audit of government transactions, receipts, pension payments, and other payments as recorded in the bank's books and daily scrolls furnished to relevant government accounting authorities (Central/State Governments/RBI). The certificate must confirm that the current claim includes transactions for which agency commission has only been claimed once. It must also verify that collections of government receipts (tax and non-tax) have been duly scrolled and remitted to the RBI, with no pending transactions for the period the agency commission is being claimed. Furthermore, a month-wise breakup of eligible pensioner accounts used to arrive at the agency commission claim has to be included in the certificate. All receipt transactions must exclude those pertaining to all tax liabilities of the bank.
The Department of Government and Bank Accounts, Central Office of the RBI, located at 4th Floor, Byculla, Mumbai - 400 008, is the relevant point of contact. Inquiries can be directed to Telephone: 022-2308 4121, Fax No. 022-2300 0370 / 2301 6072 / 2301 0095, or email: cgmicdgbac@rbi.org.in. The circular is issued by Partha Choudhuri, General Manager.
Key Entities Referenced
Reserve Bank of India: The central bank of India, also referred to as RBI.
Agency Banks: Banks authorized by the RBI to conduct government transactions on its behalf.
Agency Commission: Commission paid to agency banks for handling government transactions.
Circular No RBI/2019-20/21: RBI circular DGBA.GBD.No.531/02.007/2019-20 dated July 31, 2019 regarding agency commission claims.
Chartered Accountants: Professionals authorized to audit financial records and certify the agency commission claims.
Cost Accountants: Professionals authorized to audit financial records and certify the agency commission claims.
Department of Government and Bank Accounts: A department within the Reserve Bank of India.
Mumbai, Maharashtra: City in India, location of Central Office of RBI where Department of Government and Bank Accounts is located.
भारतीय �रज़व� ब�क
___________RESERVE BANK OF INDIA__________
www.rbi.org.in
RBI/2019-20/69
DGBA.GBD.No.648/31.12.007/2019-20 September 25, 2019
All Agency Banks
Dear Sir / Madam
Agency Commission- Furnishing reconciliation certificate
Please refer to our Circular No RBI/2019-20/21 DGBA.GBD.No.5/31.02.007/2019-20
dated July 31, 2019 related to claiming of agency commission based on which agency
banks are submitting two certificates to RBI along with the agency commission claims.
2. It is now been decided that agency banks while claiming agency commission may
submit the certificate (given in Annex B of the above mentioned Circular) duly certified by
Chartered Accountants or by Cost Accountants. Revised Annex B is enclosed. There is
no change in Annex A and other usual Certificate from ED / CGM (in charge of
government business) to the effect that there are no pension arrears to be credited /
delays in crediting regular pension / arrears thereof.
Yours faithfully
(Partha Choudhuri)
General Manager
Encl: As above
सरकारी एवं ब�क लखे ा िवभाग, केन्�ीय कायालर् य, मुंबई स�� ल रेल्व े स्टेशन के सामन,े भायखला, मुंबई 400 008
Department of Government & Bank Accounts, Central Office, Opp. Mumbai Central Railway Station, 4th Floor, Byculla, Mumbai 400 008
Telephone: (022) 2308 4121, Fax No. (022) 2300 0370/2301 6072/2301 0095, e-mail: cgmicdgbaco@rbi.org.in
िहन्दी आसान ह,ै इसका �योग बढ़ाइए ।Annex B
CERTIFICATE BY THE CHARTERED ACCOUNTANT OR COST ACCOUNTANT
Certified that we have examined the records relating to the Government transactions carried out
by the branch and that the amount of Rs…………………….. (Rupees……………………) claimed
as agency commission has been audited and found correct taking into account the number of
transactions in respect of ‘receipts’ and ‘pension payments’ and the value of transactions in
respect of ‘payments other than pension’ as recorded in the books of the bank and in the daily
scrolls of Government transactions furnished to the accounting authorities of the Central/ State
Governments/RBI and other records available at the branch. It is further certified that agency
commission claims for transactions included in the current claim has been made only once.
2. It has also been verified that the collections of Government receipts (both tax and non-tax) on
behalf of Centre/State Governments have been duly scrolled and funds remitted to RBI and no
transaction is pending for scroll with the bank pertaining to the period for which agency
commission is being claimed.
3. It is also certified that the month wise breakup of eligible pensioner’s account available with us
is as per the table below, and the agency commission as aforesaid has been arrived at on the
basis of only eligible transactions as per the extant instructions of RBI and that the receipt
transactions are exclusive of the transactions pertaining to all tax liabilities of the bank.
Sr. No. Month No. of Pensioners
1
2
3
Signature, Name, Registration No. and address
of the Chartered Accountant or Cost Accountant