Current · Source: Reserve Bank of India · RBI/2007-2008/162 · issued 18 Oct 2007 · ~2 min read
Quick answerRBI now allows RRBs with a minimum networth of Rs. 50 crore, three years of net profit, no accumulated losses, Gross NPA under 10%, no CRR/SLR violations, and compliance with prudential norms to apply for currency chest facilities.
The rule, in the simplest words
A Regional Rural Bank (RRB) can ask for a currency chest if it has at least Rs. 50 crore in net worth (how much the bank owns after debts) as shown in the latest NABARD inspection report.
The bank must have made a profit for the last three straight years and must not have any accumulated losses (money it has lost over time).
The bank must follow all prudential rules, like limits on how much it can lend to one person or group, and must not have violated any of those limits.
It must also obey RBI/NABARD instructions about giving loans to directors, their relatives, or firms they are connected to.
How it plays out — a real example
Sita, a branch manager at an RRB in Bhopal, checks her bank’s latest NABARD report and sees the net worth is Rs. 55 crore. She confirms the bank has earned profit for the past three years, the Gross NPA is 8%, and there are no CRR/SLR violations. She then writes the application to the RBI Regional Office, confident that her bank meets all the new currency chest eligibility rules.
What changed
RBI has opened the door for Regional Rural Banks to apply for currency chest facilities, provided they meet specific eligibility criteria. This supersedes earlier guidelines from December 2005, which had restricted such applications.
What it means for you
For RRBs, this is a significant operational upgrade—currency chests reduce cash handling costs and improve liquidity management. Banks that qualify can now directly manage currency distribution, enhancing service efficiency in rural areas. Lenders must ensure strict adherence to the listed norms to avoid rejection.
What you must do
Verify your RRB's networth is at least Rs. 50 crore as per the latest NABARD inspection report.
Confirm the bank has earned net profit for the last three consecutive years and has no accumulated losses.
Ensure Gross NPA is not more than 10% and there are no CRR/SLR violations in the previous and current years.
Check compliance with all prudential norms, including exposure limits and instructions on loans to directors and their relatives.
Submit the application to the concerned Regional Office of RBI's Department if all criteria are met.
What is the minimum networth required for an RRB to apply for a currency chest?
The RRB must have a minimum networth of Rs. 50 crore as per the latest NABARD inspection report.
Can an RRB with accumulated losses apply for a currency chest?
No, the bank must have earned net profit for the last three years and should not have any accumulated losses.
What happens if an RRB has violated CRR/SLR norms?
The bank must have no CRR/SLR violations during the previous and current years relative to the application date to be eligible.
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/162
RPCD.CO.
RRB. No. BC. 32 /03.05.33(C) / 2007-08
October
18, 2007
All Regional Rural
Banks
Dear Sir
Opening
of Currency Chests by RRBs
Please
refer to item (3) of our circular RPCD.CO.
RRB. No. BC.57 / 03.05.33 (F)/ 2005-06 dated December 27, 2005 . In this connection,
it has been decided that Regional Rural Banks fulfilling the following eligibility
norms may henceforth apply for currency chest facility to the Regional Office
concerned of the Department:
i)
The bank should have a minimum networth of Rs. 50 crore as per the latest NABARD
inspection report;
ii) The
bank should have earned net profit for the last three years and should not have
accumulated losses;
iii) The
Gross NPA of the bank should not be more than 10 per cent;
iv)
There should be no CRR / SLR violations during the previous and current years
with reference to the date of application of the bank;
v)
The bank should not have violated any prudential norms including individual and
group exposure norms fixed by RBI/NABARD; and
vi)
The bank should have complied with the instructions issued by RBI/ NABARD on loans
and advances to directors, their relatives/firms, etc.
Yours
faithfully
(C.S.
Murthy)
Chief General Manager-in-
Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/162 · issued 18 Oct 2007. The plain-English explanation above is BankPulse’s own independent summary.
Ensure Gross NPA is not more than 10% and there are no CRR/SLR violations in the previous and current years.
💻 IT / Systems
Submit the application to the concerned Regional Office of RBI's Department if all criteria are met.
📜 Compliance
Verify your RRB's networth is at least Rs. 50 crore as per the latest NABARD inspection report.
Confirm the bank has earned net profit for the last three consecutive years and has no accumulated losses.
Check compliance with all prudential norms, including exposure limits and instructions on loans to directors and their relatives.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Regional Rural Banks (RRBs), RBI Regional Offices, NABARD), your first concrete step on “RRBs Can Now Apply for Currency Chests: New Norms” is: “Verify your RRB's networth is at least Rs. 50 crore as per the latest NABARD inspection report.” (RBI issued this 18 Oct 2007).
Circular: RBI/2007-2008/162 -- RRBs Can Now Apply for Currency Chests: New Norms
Issued: 18 Oct 2007
Action required: Verify your RRB's networth is at least Rs. 50 crore as per the latest NABARD inspection report.
Action required: Confirm the bank has earned net profit for the last three consecutive years and has no accumulated losses.
Action required: Ensure Gross NPA is not more than 10% and there are no CRR/SLR violations in the previous and current years.
Action required: Check compliance with all prudential norms, including exposure limits and instructions on loans to directors and their relatives.
Action required: Submit the application to the concerned Regional Office of RBI's Department if all criteria are met.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3877&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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