Subordinate — THE RESERVE BANK OF INDIA ACT, 1934

__________________________ � RESERVE BANK OF INDIA www.rbi.org.in RBI/2025 -26/06 CO.DGBA.GBD.No.S2/31 -12-010/2025-2026 All Agency Banks Madam / Dear Sir Master Circular on Conduct of Government Business by Agency Banks Payment of Agency Commission Please refer to our Master Circular RBI/2024 -25/07; CO.DGBA.GBD.No.S2/31-12010/2024 -2025 dated April 1, 2024 on the above subject. We have now revised and updated the Master Circular which consolidates important instructions on the subject issued by the Reserve Bank of India till March 31, 2025 . A copy of the revised Master Circular is enclosed for your information. This Circular may also be downloaded from our website https://mastercirculars.rbi.org.in . Yours faithfully (Indranil Chakraborty) Chief General Manager Encl: As above __________________________ April 1, 2025 Introduction The Reserve Bank of India carries out the general banking business of the Central and State Governments through its own offices and through the offices of the agency banks appointed under Section 45 of the RBI Act, 1934, by mutual agreement. RBI pays agency commission to the agency banks for the government business handled by them. This Master Circular consolidates the instructions contained in the circulars listed in Annex 1 . Government transactions eligible for agency commission Transactions relating to the following government business undertaken by agency banks are eligible for agency commission paid by RBI: (a) Revenue receipts and payments on behalf of the Central/State Governments (b) Pension payments in respect of Central / State Governments and (c) Any other item of work specifically advised by Reserve Bank as eligible for agency commission The Agency banks also undertake the work related to Small Savings Schemes (SSS) the commissio