Legal UpdatesRBI

Authorised bank to get agency commission for handling the following small saving schemes related work

RBI update

RBI decides to pay agency commission to all Public Sector Banks, ICICI Bank Ltd., Axis Bank Ltd., and HDFC Bank for handling the work relating to the following small saving schemes :-

  • 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

 

RBI directs authorised banks to report all the transactions i.e. receipt, payment, penalty, interest, etc.  to the Central Account Section, Reserve Bank of India, Nagpur on a daily basis. In order to have uniformity in reporting, reconciliation and accounting authorised banks are required to report similar to the transactions of Public Provident Fund, 1968.

RBI decides to pay agency commission to Authorised bank in reference to the Notification Government of India Notification F. No. 7/10/2014-NS dated October 10, 2017,wherein banks mentioned above were authorised to receive subscriptions under the four small saving schemes mentioned above in addition to the existing small saving schemes.

Hence, RBI directs agency banks to observe the rules and regulations of the respective scheme and non-observance of regulations would attract penal action. In case of the pecuniary liabilities, if any, arising from such non-observance will be entirely borne by the bank.

 

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