Penal Interest for Delayed/Wrong/Non-Reporting of Currency Chest Transactions
The Reserve Bank of India has outlined guidelines for the levy of penal interest on delayed, wrong, or non-reporting of currency chest transactions.
Reporting Requirements: Banks are required to report currency chest transactions within the stipulated time frame.
Time Limit: The time limit for reporting is 7 days from the date of transaction, with a relaxation of 3 days during strike periods in banks.
Penal Interest: A penal interest will be levied for delays in reporting, with a maximum interest rate applicable.
Wrong Reporting: Wrong reporting will also attract penal interest, with the same maximum interest rate applicable.
Rate of Penal Interest
The rate of penal interest will be 2% per annum above the Bank Rate prevailing at the time of default.
Levy of Penal Interest at Treasuries
Penal interest will also be levied on currency chests at treasuries, following the same guidelines as above.
Representations
Banks can submit representations to the Reserve Bank of India in case of any disputes or clarifications regarding the levy of penal interest.
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