Master Direction on Penal Provisions in reporting of transactions/ balances at Currency Chests

RBI Master Direction Link

Master Direction on Penal Provisions in Reporting of Transactions/Balances at Currency Chests

The Reserve Bank of India has issued a master direction on penal provisions for reporting of transactions and balances at currency chests. The direction outlines the reporting procedure, penalties for delayed or wrong reporting, and operational guidelines for levying penalties.

Reporting Procedure: Currency chest transactions must be reported by 7 pm, with relaxation in case of bank strikes.

Penalties: Delayed or wrong reporting will attract penal interest, with specific rates applicable for different types of irregularities, including:

  • Delayed reporting of amount due
  • Wrong reporting of transactions
  • Inclusion of ineligible amounts in currency chest balances
  • Other deficiencies

Levy of Penalty: Penalties 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”

Operational Guidelines: The competent authority will decide on the nature of irregularity and levy penalties/penal interest accordingly.

Business Continuity Measure: The direction also outlines business continuity measures to ensure uninterrupted reporting of transactions and balances.

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Download: Master Direction on Penal Provisions in reporting of transactions/ balances at Currency Chests

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