What changed
RBI issued a master circular superseding all prior instructions on penal interest for currency chest reporting lapses. It set a minimum transaction amount of ₹1 lakh and multiples of ₹50,000. Reporting timelines were standardized: same-day reporting to Link Office, next-day consolidation to Issue Office, with T+0 for ICCOMS circles. Penal interest now applies uniformly for delays, wrong reporting, and counterfeit notes in remittances.
What it means for you
Banks with currency chests must tighten internal processes to avoid penal interest charges. The ₹1 lakh minimum and strict timelines increase operational discipline. For ICCOMS-enabled circles, same-day upload by 11 PM is mandatory, raising compliance stakes. Continued delays may trigger RBI warnings and escalation to controlling offices.
What you must do
- Ensure all currency chest transactions are reported to Link Office on the same day, and Link Office consolidates to Issue Office by next working day.
- For ICCOMS circles, upload transactions via SWS by 11 PM on the same business day to avoid T+0 penal interest.
- Verify correctness of reported figures to prevent wrong reporting penalties; correct errors immediately.
- Treat half-yearly/annual closing holidays as working days for reporting timelines.
- Report counterfeit notes in chest remittances promptly; RBI will debit the value and levy penal interest from the last remittance date.
Who it affects
All banks with currency chests, Link Offices and Issue Offices, Sub-Treasury Offices (STOs) linked to RBI Issue Offices, State Government Treasuries
How are counterfeit banknotes in chest remittances handled?
The full value of counterfeit notes is debited from the bank's current account, penal interest is levied from the date of the previous remittance, and an FIR is lodged with police.