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, or non-reporting of currency chest transactions and inclusion of ineligible amounts in currency chest balances.
Reporting of Currency Chest Transactions: Banks are required to report currency chest transactions on the same day, with a time limit of 7 pm. However, during strike periods in banks, a relaxation is provided.
Levy of Penal Interest: Penal interest will be levied for:
- Delayed Reporting: on the amount due
- Wrong Reporting: as per the prescribed format
- Inclusion of Ineligible Amounts: in the currency chest balances
Levy of Penalty: A penalty will be levied for:
- Delayed Reporting of Soiled Note Remittances: to RBI
- Delayed Reporting of Diversions: in CyM – CC portal
- Delayed Reporting: where currency chests had “Net Deposit” or “Net Withdrawal”
The master direction aims to ensure timely and accurate reporting of currency chest transactions and maintenance of correct balances.
Chat with the Master Direction: