February 01, 2018
Agency Banks handling Small Saving Schemes
Sir / Madam
Saving Schemes – Payment of Agency Commission
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.
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.
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
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.
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.