The Reserve Bank of India (RBI) on April 30, 2026, notified the Reserve Bank of India [Conduct of Government Business by Agency Banks (ABs) – Payment of Agency Commission and Oversight of ABs] Directions, 2026.
The following has been stated:-
•These directions define Agency Banks (ABs) as eligible banks appointed by the RBI to conduct Central and State Government banking business.
•They outline key terms such as agency commission, prefunded schemes, and reporting tools like payment/receipt scrolls and luggage files.
•All PSBs, private banks, payment banks, and small finance banks can act as ABs upon agreement with the RBI, subject to eligibility conditions.
•The appointment and accreditation process involves coordination between government departments and RBI, with performance subject to periodic review.
•ABs are entitled to agency commission for specified government transactions and must strictly follow government instructions.
These Directions shall come into effect immediately upon their issuance, unless indicated otherwise.
The detailed notification is given in the document below.
[Notification No.: RBI/DGBA/2026-27/400 CO.DGBA.GBD.No.S44/31.02.007/2026-27]
