What changed
RBI extended currency chest facility to scheduled UCBs registered under the Multi State Co-operative Societies Act, 2002 or state acts with an MOU with RBI. Previously, this facility was not available to UCBs. The eligibility norms were notified separately as per the Mid Term Review of the Annual Policy Statement for 2005-06.
What it means for you
This move allows stronger UCBs to manage cash logistics directly, reducing dependence on other banks. It signals RBI's confidence in financially sound UCBs, but the high net worth and profitability thresholds limit eligibility to top-tier banks. Lenders must strengthen balance sheets to qualify.
What you must do
- Assess your bank's net worth, CRAR, and NPA ratios against the Rs 200 crore, 12%, and 10% thresholds.
- Ensure three consecutive years of profit and no accumulated losses.
- Maintain 'A' audit classification and full CRR/SLR compliance.
- Verify your board has at least two professionals and is elected.
- If eligible, apply to RBI's Department of Currency Management with required documentation.
Who it affects
Scheduled primary (urban) co-operative banks, UCBs registered under Multi State Co-operative Societies Act, 2002, UCBs under state acts with MOU with RBI, Bank boards and management teams
What is the minimum net worth required for a UCB to get currency chest facility?
The bank must have a minimum net worth of Rs 200 crore.
Does the bank need to have an elected board with professionals?
Yes, the bank must have an elected board of management with at least two professionals.
Where should eligible UCBs apply for this facility?
Applications should be sent to the Chief General Manager, RBI, Department of Currency Management, Central Office, Mumbai.