Master Circular on Penal Interest for Currency Chest Transactions
The Reserve Bank of India (RBI) has issued a master circular on the levy of penal interest for delayed reporting, wrong reporting, or 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 stipulated time limit. A relaxation is provided for strike periods in banks.
Penal Interest: Delayed, wrong, or non-reporting of transactions will attract penal interest. The maximum penal interest to be charged is specified.
Inclusion of Ineligible Amounts: Penal interest will also be levied for including ineligible amounts in currency chest balances.
Rate of Penal Interest: The rate of penal interest is specified.
Levy of Penal Interest at Treasuries: The levy of penal interest also applies to currency chests at treasuries.
Representations: Representations, if any, should be submitted to the RBI.
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