Bank collection agents for government revenue

What a collecting bank does

The World Bank TSA toolkit describes revenues deposited into revenue transit accounts in commercial banks ⁵. The central treasury usually receives daily information from these agent banks to monitor collections ⁵. The toolkit asks whether agent banks transfer all revenues to the treasury's TSA account at the central bank daily ⁵.

In Tanzania, the GePG guide lists banks such as NMB, CRDB, NBC and PBZ. A bank appears for a public body only if that body has a collection account there ⁶. In Uganda, the payer takes the payment registration slip to a teller at the bank named on it, and the bank sends the details to URA ⁷.

How fast banks must pass money on

How banks are paid

The IMF note says some countries pay banks with an interest-free float, which it describes as not transparent. It names a fee per transaction as good practice ¹. The 2010 paper says banks with a float invest the money, which distorts the TSA ².

India publishes its rates. Agency banks handle government business under Section 45 of the RBI Act, 1934 ⁸. From 1 April 2025 the Reserve Bank of India pays ₹40 per physical receipt and ₹12 per e-mode receipt ⁴. Claims go to the RBI quarterly and must be certified by an external chartered accountant ⁸.

What audits check

PEFA dimension 20.3 asks whether revenue bodies reconcile assessments, collections, arrears and transfers to the treasury. Score A needs this at least quarterly, within four weeks of the quarter end ³.

Audit Service Sierra Leone, in its summary of the 2024 report, said transfers of NLe9,623,044.50 for customs and excise could not be traced to the Bank of Sierra Leone account ⁹. It said land revenue of NLe3,541,598 was not paid into the transit account at Sierra Leone Commercial Bank ⁹.