Home › Circulars › RBI/2008-09/146

RBI Mandates Cash Acceptance at All Bank Counters

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/146 · issued 28 Aug 2008 · ~2 min read
Quick answerRBI has directed all scheduled commercial banks (excluding RRBs) to accept cash deposits over the counter from all customers, banning any product or clause that restricts this. Banks cannot design products that deviate from core banking tenets.

What changed

RBI observed that some banks introduced products barring counter cash deposits, requiring customers to use ATMs instead. The circular explicitly prohibits such clauses in terms and conditions, mandating that branches must accept cash over the counter from any customer who wishes to deposit cash.

What it means for you

Banks must immediately review and revise any product terms that limit cash deposits to ATMs only, as these are deemed unfair and inconsistent with banking fundamentals. This reinforces the basic definition of banking as accepting deposits from the public, and non-compliance could invite regulatory action.

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 scheduled commercial banks (excluding RRBs), Branch operations teams, Product development and legal departments, Retail and corporate customers

❓ Common questions

Regulatory timeline

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

Does this circular apply to Regional Rural Banks (RRBs)?

No, the circular explicitly excludes RRBs from its scope, as it is addressed to all scheduled commercial banks excluding RRBs.

Can we still offer ATM-only deposit products if we provide an alternative counter option?

No, the circular prohibits any product or clause that restricts cash deposits over the counter. Banks must accept cash at counters from all customers who choose to deposit that way.

What is the penalty for non-compliance with this directive?

The circular does not specify penalties, but non-compliance may be treated as an unfair practice and could lead to regulatory action by RBI.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2129: DBOD.No.Leg.BC.38/09.07.005/2008-09 — "Acceptance of Cash Over the Counter" dated August 28, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/146 DBOD.No.Leg.BC. 38 /09.07.005/2008-09 August 28, 2008 All Scheduled Commercial Banks (Excluding RRBs) Dear Sir, Acceptance of cash over the counter It has been brought to our notice that some banks have introduced certain products whereby the customers are not allowed to deposit cash over the counters. Further it is also understood that these banks have also incorporated a clause in the terms and conditions that cash deposits, if any, are required to be done through ATMs. 2. In this connection, it may be mentioned that banking by definition means acceptance of deposits of money from the public for the purpose of lending and investment. As such, banks cannot design any product which is not in tune with the basic tenets of banking. Further, incorporating such clauses in terms and conditions which restricts deposit of cash over the counters also amounts to an unfair practice. 3. Banks are therefore advised to ensure that their branches invariably accept cash over the counters from all their customers who desire to deposit cash at the counters . Further, they are also advised to refrain from incorporating clauses in the terms and conditions which restricts deposit of cash over the counters. Yours faithfully (Prashant Saran) Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/146 · issued 28 Aug 2008. The plain-English explanation above is BankPulse’s own independent summary.
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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=4440&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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