Master Direction on Penal Provisions in Reporting of Transactions/Balances at Currency Chests
The Reserve Bank of India has issued a master direction outlining the penal provisions for deficiencies in reporting of transactions and balances at Currency Chests.
The direction covers the reporting procedure, including the time limit for reporting, which is 7 pm on the same day, with relaxation allowed in case of a bank strike.
Penal provisions are outlined for delayed, wrong, or non-reporting of transactions, including the levy of penal interest. Specific penalties are mentioned for:
- Delayed reporting
- Wrong reporting
- Inclusion of ineligible amounts in currency chest balances
- Other deficiencies
Additionally, the direction covers the levy of penalty for:
- Reporting of soiled note remittances to RBI
- Reporting of diversions in CyM – CC portal
- Delayed reporting where currency chests had “Net Deposit”
The rate of penal interest is specified, and operational guidelines are provided for the levy of penalties and penal interest, including the competent authority to decide the nature of irregularity.
Chat with the Master Direction: