The State Bank of India's government business may take a marginal hit in 2005-06, after the Reserve Bank of India changed the agency commission norm on government business payable to banks to volume of transaction from value of transaction, said S K Mishra, the bank's general manager and head of government business. | |
| "It will not affect the bottomline of the bank as the assets and deposits are growing strongly," Mishra said on the sidelines of a seminar on e-payment of central excise and service tax. |
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| The bank is yet to gauge the impact of the change in the agency commission regulation. "It is a new regulation and we are yet to study the impact," he added. The country's largest state-owned bank also is one of the major players in government business. |
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| "We have always been dealing in volumes and will be able to make up the fall in commission (agency) by better techniques," Mishra said. |
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| Government business handled by banks includes accepting tax payments, stamp duty and accepting payments in public provident fund, pension funds accounts. |
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| The central bank of India fixed the rate on receipts at Rs 45 per transaction, Rs 50 per transaction for payments other than pension, and Rs 60 a transaction for pension payments. |
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| Earlier, it was Rs 11.80 per Rs 100 of government transaction. |
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