Master Direction on Levy of Penal Interest for Delayed Reporting / Wrong Reporting / Non-Reporting of Currency Chest Transactions and Inclusion of Ineligible Amounts in Currency Chest Balances

Last updated: 05 April 2021

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The Reserve Bank of India (RBI) has issued a Master Direction outlining penalties for banks with currency chests. This direction specifies penal interest rates for delayed, incorrect, or missed reporting of currency chest transactions. It also covers penalties for including ineligible amounts in chest balances, ensuring timely and accurate financial reporting to maintain discipline and support the Clean Note Policy.

Reserve Bank of India RBI/2021-22/77 Master Direction DCM (CC) No.G-4/03.35.01/2021-22 April 01, 2021 The Chairman/ Managing Director/Chief Executive Officer (All Banks having Currency Chests) Madam / Dear Sir Master Direction on Levy of Penal Interest for Delayed Reporting / Wrong Reporting / Non-Reporting of Currency Chest Transactions and Inclusion of Ineligible Amounts in Currency Chest Balances In terms of the Preamble, under Section 45 of the RBI Act, 1934 and 35 A of t

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FAQ :

The minimum amount for deposit into or withdrawal from a currency chest is ₹1,00,000, and thereafter in multiples of ₹50,000.

All currency chest transactions must be reported on the same day by 7 pm through the CyM-CC portal.

Penal interest is levied at a rate of 2% over the prevailing Bank Rate on the amount due for the period of delay, calculated on a T+0 basis.

Penal interest will be levied from the date the ineligible amounts are included in the chest balances until they are excluded. Ineligible amounts include cash not freely available to joint custodians.

Yes, if soiled note remittances to the RBI are wrongly reported as 'withdrawals', a penalty of ₹50,000 will be levied, regardless of the remittance value or duration of the error.

Waivers for delayed reporting may be considered on a case-by-case basis for genuine difficulties, especially in remote areas or due to natural calamities. However, waivers for wrong reporting are generally not considered.

Notification No : RBI/2021-22/77 Master Direction DCM (CC) No.G-4/03.35.01/2021-22
Source : https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=12056&Mode=0

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