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RBI Doubles Service Charge for Non-Chest Bank Cash Deposits

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2006-2007/283 · issued 09 Mar 2007 · ~1 min read
Quick answerFrom April 1, 2007, currency chest banks can charge Rs. 2 per note packet (100 pieces) for cash deposited by non-chest branches, up from Re. 1. Co-operative banks and RRBs remain exempt under the Remittance Facility Scheme.

What changed

RBI raised the maximum service charge that currency chest banks can levy on non-chest bank branches for cash deposits from Re. 1 to Rs. 2 per packet of 100 notes, effective April 1, 2007. The exemption for co-operative banks and regional rural banks under the Remittance Facility Scheme continues unchanged.

What it means for you

This gives chest banks additional revenue to cover the cost of handling cash for smaller branches, potentially improving service quality. Non-chest branches will face higher costs for cash deposits, which may prompt them to optimize cash management or renegotiate arrangements.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All banks holding currency chests, Non-chest bank branches depositing cash at chest branches, Co-operative banks and Regional Rural Banks (exempted)

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the new service charge for cash deposits by non-chest branches?

From April 1, 2007, chest banks can charge Rs. 2 per packet of 100 notes, up from the earlier Re. 1 per packet.

Are co-operative banks and RRBs affected by this change?

No, they continue to be exempt from these charges for cash deposits under the RBI's Remittance Facility Scheme.

📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/283 DCM (NPD) No.6316/09.40.02/2006-07 March 9, 2007 The Chairman & Managing Director / Managing Director / Chief Executive Officer, All Banks having currency chests Dear Sir / Madam, Incentive for improving service to non-chest bank branches Please refer to our circulars DCM (NPD) No. G.30/ 09.39.00/2001-02 dated March 23, 2002 and DCM (NPD) No. G.9 /09.39.00/2002-03 dated September 23, 2002 on the captioned subject. 2. It has been decided to allow the currency chest holding banks to enhance the ‘service charges’ from the existing rate of Re.1/- per  note packet of 100 pieces to Rs.2/- per packet to be levied on cash deposited by the non-chest bank branches with effect from April 01, 2007. The constituent banks may be advised well in advance in this regard. 3. The exemption granted to Co-operative banks and Regional Rural Banks on their cash deposits for the purpose of transfer of funds under the Reserve Bank of India’s Remittance Facility Scheme would however, continue. 4. Please acknowledge receipt. Yours faithfully, (R. Muralidharan) General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/283 · issued 09 Mar 2007. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3348&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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