Master Direction on Levy of Penal Interest
The Reserve Bank of India (RBI) 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 the specified time limits. Delays in reporting will attract penal interest.
Time Limits for Reporting: The time limits for reporting vary depending on the type of transaction, with some transactions requiring same-day reporting and others having a longer timeframe.
Levy of Penal Interest: Penal interest will be levied for delays in reporting, wrong reporting, and non-reporting of currency chest transactions. The rate of penal interest will be determined by the RBI.
Inclusion of Ineligible Amounts: Penal interest will also be levied for the inclusion of ineligible amounts in currency chest balances.
Representations: Banks can submit representations to the RBI in case of delayed reporting, wrong reporting, or non-reporting of currency chest transactions.
Rate of Penal Interest: The rate of penal interest will be determined by the RBI and will be applicable to all currency chests, including those at treasuries.
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