Rate of Commission to the Small Savings Agent & BPM

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Rate of Commission to the Small Savings Agent & BPM
The Rate of Commission to the Small Savings Agent & BPM

Postal Department has many schemes to provide safe and secure investment to the small savings investor. The customer can invest their hard working money directly in the post office counter or by a postal agent.

There is an another way to invest their money through rural postal network which is called Branch Post Office located in rural area.

If the customers visit post office counter then no commission will be paid to any one but if any customer can’t visit post office then postal agent will visit their home to collect premium or open an account. For this work commission is given to postal agent.

Rate of Commission to the Postal Agent

The payment of commission to agents of Public Provident Fund (PPF) Scheme and Senior Citizens Savings Scheme has been discontinued, with effect from 1st December, 2011. Commission under all other schemes (except MPKBY Agents) has been reduced from 1% to 0.5%. However, commission to Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) agents will continue at the existing rate of 4%.

The Committee set up by the Government for comprehensive review of National Small Savings Fund (NSSF) had, inter-alia, recommended rationalization of commission rate structure. Based on the recommendations, the Government has decided to reduce/ abolish the agency commission.

Presently the commission is given by the following rates by the postal agents.

Name of SchemeRate of Commission to the Agent
Recurring Deposit (MPKBY)4.0%
RD – PRSSDiscontinued from 01/10/2016
1 Year Time Deposit0.5%
2 Year Time Deposit0.5%
3 Year Time Deposit0.5%
5 Year Time Deposit0.5%
Monthly Income Scheme – MIS0.5%
5 Year NSC0.5%
10 Year NSC – Discontinued
Kisan Vikas Patra – KVP0.5% (from 15/09/2017)
Sr. Citizen Savings SchemeNIL

The main intention for which is to make these schemes more investor-centric than agent-centric. Market-linked rates to investors, market-linked interest rates on loans to States and Centre and viability of NSSF can only be ensured if the administrative cost of NSSF, of which this commission is a part, is brought down and the benefit of market alignment of rates is passed on to the investor rather than burdening the structure with higher administrative costs. To this effect, the decision of Government is pro-investor and also keeps in mind the interest of agents where required.

Rate of Commission to the Postal BPM

Not only Postal Agent, but Rural Postal Employee is also given the commission for investment in Post Office Time Deposit (POTD) Scheme by the following rates.

GDS BPM – TD CommissionCategory
1 Year Time Deposit0.5%
2 Year Time Deposit0.5%
3 Year Time Deposit1.0%
5 Year Time Deposit2.0%

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