Reserve Bank Of India
Payment of Agency Commission on pension
accounts
As you may be aware, agency banks are being
compensated at Rs.65 per transaction for handling pension computation, payment
and related services on behalf of Central and State Governments. As per the
norms followed by the Government, a pensioner’s account should not have
more than 14 credit transactions in a calendar year attributable to
pension and related arrear payments, if any.
2. It has however come to our notice that
certain banks are apportioning payment of arrears on account of Dearness Relief
(DR) and/or delay in start of pension monthwise, thus, resulting in inflated
agency commission claims. It is reiterated that number of commisionable
transactions for payment of agency commission on account of pension in a year
should not exceed 14. This includes one monthly credit for payment of net
pension and a maximum of two per year for payment of arrears on account of
increase in DR, if applicable.
3. It is also reiterated that cases involving
payment of arrears on account of late start/restart of pension qualifies as a
single transaction for claiming of agency commission. In other words, any
payment of arrears on account of late start/restart of pension should be
effected in a single credit transaction instead of separate monthly credits.
4. Some of the Central Government Departments
and State Governments prefer to compute the pension figures on their own and
pass them on to banks for payment. Such transactions may be included under
non-pension payments, on which agency commission is payable on a turnover basis
as per the existing norms (currently at 5.5 paise per Rs. 100/-).
Yours faithfully
(Manish Parashar)
Deputy General Manager
Deputy General Manager