The Reserve Bank of India has released new directions for Agency Banks regarding the conduct of government business, including commission payments and oversight measures. These directions aim to ensure a structured framework for the operational conduct of agency banks in government transactions.
RBI Issues Directions on Agency Banks' Government Business Conduct
On April 30, 2026, the Reserve Bank of India (RBI) published the 'Conduct of Government Business by Agency Banks (ABs) – Payment of Agency Commission and Oversight of ABs' Directions, 2026. These directions provide a comprehensive framework concerning the operations of agency banks involved in government business, focusing on the payment structures for agency commissions.
The new directions provide clarity on the appointment of agency banks and outline the responsibilities regarding commission payments. Specifically, they emphasize the need for adherence to regulatory mechanisms and accountability for the services provided by these banks, thereby ensuring better oversight in the conduct of government business.
Legal practitioners should note the significance of these directions as they redefine the operational framework of agency banks, mandating compliance with stipulated procedures. This is essential for maintaining the integrity of government financial processes and protecting public interest.
Citations
- Reserve Bank of India Directions (2026) RBI Notification No. 13443
