Framework of Incentives for Currency Distribution & Exchange Scheme
The Reserve Bank of India has introduced a framework of incentives for bank branches, including currency chests, based on their performance in providing customer service to the public.
The incentives are categorized into two parts:
Capital Cost: Incentives for capital expenditure incurred by banks to improve their infrastructure and technology for currency distribution and exchange.
Revenue Cost: Incentives for revenue expenditure incurred by banks to improve their operational efficiency and customer service.
The incentives are provided for two specific services:
a. Exchange of soiled notes: Incentives for banks that efficiently exchange soiled notes, promoting clean currency circulation.
b. Adjudication of mutilated notes: Incentives for banks that effectively adjudicate mutilated notes, ensuring accurate and timely processing.
In addition to these incentives, the framework outlines other operational instructions for the payment of performance-based incentives.
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