RBI/2017-18/107
DGBA.GBD.No-1498/31.02.007/2017-18
December
7, 2017
The Chairman/ Managing Director/
Chief Executive Officer/
Agency Banks
Dear Sir/ Madam
Settlement
of Agency transactions in certain cases (for Funds and Agency Commission)
directly from Reserve Bank of India
As per the existing arrangements
in certain states, in certain cases, some agency banks are routing their
agency transactions of state governments through another agency bank that
acts as an aggregator that in turn settles these agency transactions with
concerned Regional Office of RBI for both receipts and payments. In such
scenario, both agency bank acting as aggregator and other agency bank share
the eligible agency commission on such transactions.
2. In the age of prevailing Core
Banking Solutions/e-banking systems in all the agency banks, Reserve Bank
is committed to provide fast, efficient and secure banking facility to the
State Governments by implementation of standardised e-receipts and
e-payments with its CBS (e-Kuber), enabling RBI to act as single point of
contact for settling state government funds (receipts/payment). This will
also facilitate better cash management by the State Governments.
3. Therefore, on review, it has
been decided that all agency banks should settle their agency transactions
for both funds and agency commission directly with the concerned Regional
Office of Reserve Bank instead of routing them through any other agency
bank that acts as aggregator in certain cases. It effectively makes all
agency banks to report government receipts directly to RBI instead of
reporting them through any other agency bank. So also for payments made by
all agency banks on behalf of state government/s get directly settled with
the concerned Regional Office of RBI. Agency Transaction details/scrolls
may be sent directly by individual agency bank to the concerned State
Government/Treasury. This arrangement is expected to improve management of
State Government funds apart from reducing inefficiencies in the system.
4. Agency Banks that are already
settling their state government transactions with RBI directly may continue
to do so. Agency Banks that are hither to settling their transactions with
other aggregator agency bank may stop such reporting. Such banks should
settle their agency transaction hereafter with RBI directly. The new
arrangement for settlement of state government funds on day to day basis
(receipts and payments) directly with Reserve Bank will be with effect from
January 1, 2018. Thereby, all agency commission claims beginning with the
quarter ending March 31, 2018 will be settled directly with the concerned
Regional Office of Reserve Bank of India.
Yours faithfully
(D. J. Babu)
Deputy General Manager
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