**Policy Summary**
This Reserve Bank of India (RBI) circular, reference number RBI/2017-18/127 DGBA.GBD.No.1972/15.02.005/2017-18, dated February 01, 2018, addresses all agency banks handling Small Saving Schemes. The circular pertains to the payment of agency commission to authorized banks for handling specific small saving schemes.
Following Government of India Notification F. No. 7/10/2014-NS dated October 10, 2017, which authorized Public Sector Banks, ICICI Bank Ltd., Axis Bank Ltd., and HDFC Bank Ltd. to receive subscriptions under additional schemes, the RBI has decided to extend agency commission payments to these banks for handling the National Saving Time Deposit Scheme, 1981, National Saving Monthly Income Account Scheme, 1987, National Saving Recurring Deposit Scheme, 1981, and National Saving Certificates VIII Issue Scheme, 1989. The commission will be paid as per the extant rates advised in Master Circular RBI/2017-18/2 DGBA.GBD.No.231/12.010/2017-18 dated July 1, 2017. Agency banks are instructed to expedite the implementation of these schemes.
The circular mandates that all transactions related to these schemes (receipt, payment, penalty, interest, etc.) be reported directly to the Central Account Section, Reserve Bank of India, Nagpur, on a daily basis, mirroring the reporting procedure for Public Provident Fund, 1968, to ensure uniformity in reporting, reconciliation, and accounting.
Agency banks are required to adhere to the rules and regulations of each scheme, with non-compliance resulting in penal action and the bank bearing any associated pecuniary liabilities.
Banks are instructed to contact the Central Account Section, Reserve Bank of India, Nagpur, to establish the necessary arrangements for reporting transactions under these schemes with immediate effect.
The Department of Government Bank Accounts, Central Office of the RBI is located at 4th Floor, Byculla, Mumbai 400 008. Contact information includes Telephone: 022-2308 4121, Fax No. 022-2300 0370/2301 6072/2301 0095, and email: pcgmdgbacorbi.org.in. The circular was issued by Partha Choudhuri, General Manager.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the publisher of the notification.
Government of India: The governing body of India, which issued the initial notification regarding Small Saving Schemes.
Public Sector Banks: A category of banks authorized to receive subscriptions under various National Saving Schemes.
ICICI Bank Ltd.: A private sector bank authorized to receive subscriptions under various National Saving Schemes.
Axis Bank Ltd.: A private sector bank authorized to receive subscriptions under various National Saving Schemes.
HDFC Bank Ltd.: A private sector bank authorized to receive subscriptions under various National Saving Schemes.
National Saving Time Deposit Scheme, 1981: A small saving scheme under which subscriptions can be made at authorized banks.
Central Account Section, Reserve Bank of India, Nagpur, Maharashtra: The section of the Reserve Bank of India in Nagpur responsible for handling transactions related to the schemes.
भारतीय �रज़व र् बक�
___________________RESERVE BANK OF INDIA ___________________
www.rbi.org.in
RBI/2017-18/127
DGBA.GBD.No.1972/15.02.005/2017-18 February 01, 2018
All Agency Banks handling Small Saving Schemes
Dear Sir / Madam
Small Saving Schemes – Payment of Agency Commission
Please refer to Government of India Notification F. No. 7/10/2014-NS dated October 10,
2017, wherein, all Public Sector Banks, ICICI Bank Ltd., Axis Bank Ltd., and HDFC Bank
Ltd., were authorised to receive subscriptions under National Saving Time Deposit
Scheme, 1981, National Saving (Monthly Income Account) Scheme, 1987, National
Saving Recurring Deposit Scheme, 1981 and National Saving Certificates (VIII Issue)
Scheme, 1989 in addition to the existing small saving schemes.
2. In view of the above, it has been decided to pay agency commission to authorised
banks for handling the work relating to the above four small saving schemes also as per
the extant rates advised by our Master Circular RBI/2017-18/2
DGBA.GBD.No.2/31.12.010/2017-18 dated July 1, 2017. Agency banks are advised to
expedite the implementation of the above schemes.
3. All the transactions i.e. receipt, payment, penalty, interest, etc. may be directly
reported to the Central Account Section, Reserve Bank of India, Nagpur on a daily basis
like the transactions of Public Provident Fund, 1968, in order to have uniformity in
reporting, reconciliation and accounting.
4. The Agency banks are required to observe the rules and regulations of the respective
scheme. Non-observance of rules and regulations would attract penal action. Pecuniary
liabilities, if any, arising from such non-observance shall be borne entirely by the bank.
सरकार� एवं ब�क लेखा �वभाग, केन्द्र�य कायार्लय, मुंबई स�ट्रल रेल्व े स्टेशन के सामने, 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: pcgmdgbaco@rbi.org.in
�हन्द� आसान है, इसका प्रयोग बढ़ाइए ।5. You are, therefore, requested to approach Central Account Section, Reserve Bank of
India, Nagpur for necessary arrangements to report transactions under the above
schemes with immediate effect.
Yours faithfully,
(Partha Choudhuri)
General Manager