RBI Review of incentive and other measures to enhance distribution of coins

Last updated: 28 August 2021

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The Reserve Bank of India (RBI) has reviewed and enhanced its scheme for coin distribution. Effective from September 1, 2021, banks will receive a higher incentive of ₹65 per bag for distributing coins, an increase from the previous ₹25. Additional incentives are available for distribution in rural and semi-urban areas. The RBI is also encouraging banks to explore alternative distribution channels, including engaging Business Correspondents (BCs) and Cash in Transit (CIT) entities, and to provide coins to KYC-compliant bulk customers for business transactions.

Reserve Bank of India RBI/2021-22/93 DCM (CC) No.97527/03.41.01/2021-22 August 27, 2021 The Chairman / Managing Director Chief Executive Officer (All Scheduled Commercial banks including RRBs) Madam / Dear Sir, Review of incentive and other measures to enhance distribution of coin

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FAQ :

The incentive for distributing coins has been increased to ₹65 per bag, up from the previous ₹25, effective September 1, 2021.

Yes, an additional incentive of ₹10 per bag will be paid for coin distribution in rural and semi-urban areas, provided a CA/Auditor certificate is submitted.

Yes, banks are advised to provide coins to KYC-compliant bulk customers for business transactions, provided they maintain records and exercise due diligence to prevent misuse.

Banks are encouraged to enhance their engagement with BCs for coin distribution to the public and may incentivise these activities.

Yes, banks may engage CIT entities to further enhance the distribution of coins to the public.

Banks are advised to ensure that each of their branches maintains a minimum stock of one bag of coins in each denomination to ensure a steady supply.

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Notification No : RBI/2021-22/93 DCM (CC) No.97527/03.41.01/2021-22
Published in Community & General
Source : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12154&Mode=0

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