By TIOL News Service

NEW DELHI, JULY 13, 2018: BY taking into account the steady increase in the electronic transactions, especially after the implementation of GST framework, it has now been decided to reduce the time period allowed to agency banks to furnish their claim on agency commission to Reserve Bank from 90 days to 60 calendar days from the end of the quarter in which the transactions had been conducted. If the banks fail to lodge claims within the stipulated period, Reserve Bank would have the discretion to reject the claims. That would be applicable for the agency commission claims for the quarter ended June 30, 2018 onwards.

By the circular no.DGBA.GBD.N0.3262/31.02.007/2016-17 dated June 15, 2017, all agency banks were advised to submit their agency commission claims to the Reserve Bank of India within 90 days from the end of the quarter during which the transactions had been conducted. However, it was observed that agency banks were submitting their claims for the agency commission after much delay, even though all the agency banks were under core banking system. That leads to avoidable delays in timely assessment of agency commission payment by RBI.

It was also observed that agency banks were not reporting all the requisite information, as per the prescribed format, while claiming agency commission from RBI resulting in gaps and inconsistency in data submission. Thus, agency banks were advised to scrupulously follow the instructions issued by RBI while submitting the claims for agency commission in the prescribed format. It was further advised that the granularity, frequency and process of submission of agency transaction related data by agency banks is being examined and detailed instructions would be issued to the banks shortly in that regard.