Penal Interest for Delayed/Wrong/Non-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, which will be charged at a rate determined by the Reserve Bank of India (RBI).
The time limits for reporting are:
- Same day for transactions above ₹1 crore
- T+1 day for transactions between ₹50 lakh and ₹1 crore
- T+2 days for transactions below ₹50 lakh
Relaxation is provided for strike periods in banks. Wrong reporting will also attract penal interest.
Penal Interest for Inclusion of Ineligible Amounts in Currency Chest Balances
Banks are required to ensure that only eligible amounts are included in currency chest balances. Inclusion of ineligible amounts will attract penal interest.
Rate of Penal Interest
The rate of penal interest will be determined by the RBI.
Levy of Penal Interest in Respect of Currency Chests at Treasuries
Penal interest will also be levied on currency chests at treasuries.
Representations
Banks can submit representations to the RBI in case of any disputes or issues related to penal interest.
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