Master Circular on Penal Interest for Currency Chest Transactions
The Reserve Bank of India (RBI) has issued a master circular regarding 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 accurately and 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. Particular care should be taken to avoid reporting remittances of fresh notes as ‘deposit’ transactions. 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.
Chat with the Master Circular: