Master Direction on Levy of Penal Interest for Currency Chest Transactions
The Reserve Bank of India has issued a master direction on the levy of penal interest for delayed reporting, wrong reporting, and non-reporting of currency chest transactions, as well as the inclusion of ineligible amounts in currency chest balances.
Reporting of Currency Chest Transactions: Banks are required to report currency chest transactions within a specified time limit, which is 7 pm on the same day or the next working day, depending on the scenario. There is a relaxation in respect of strike periods in banks.
Levy of Penal Interest: Penal interest will be levied for delayed reporting, wrong reporting, and inclusion of ineligible amounts in currency chest balances. The penal interest rate will be determined by the RBI.
Levy of Penalty: A penalty will be levied for delayed reporting of soiled note remittances to RBI, diversions in CyM-CC portal, and delayed reporting where currency chests had a “Net Deposit”.
Representations: Banks can make representations to the RBI in cases of delayed reporting, wrong reporting, and non-reporting of currency chest transactions.
The master direction aims to ensure accurate and timely reporting of currency chest transactions and to prevent the inclusion of ineligible amounts in currency chest balances.
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