What changed
RBI issued a directive in November 2009 requiring banks to process Rs. 100 and above notes through machines for fitness and authenticity before issuing them via ATMs or counters. Now, RBI has decided to accept the Group's recommendation to encourage banks to set up state-of-the-art CPCs with enhanced processing and storage capacities to further the Clean Note Policy.
What it means for you
Banks can now set up CPCs at existing currency chest branches, attached to chest branches at different locations, or as standalone centres. CPCs can serve other banks and even non-bank entities like merchant establishments for a fee, making them viable. This reduces overnight cash risks at branches and leverages economies of scale.
What you must do
- Evaluate setting up CPCs at key locations to centralize note processing and storage.
- Ensure all machines at CPCs conform to RBI's Note Authentication and Fitness Sorting Standards.
- Consider offering CPC services to other banks and commercial entities at mutually agreed fees.
- Prepare for RBI inspections of CPCs at any time.
Who it affects
All Scheduled Commercial Banks, Currency chest branches, Bank branches handling high denomination notes
What types of Cash Processing Centres can banks set up?
Banks can set up three types: a CPC at an existing currency chest branch in the same location, a CPC attached to an existing/new currency chest branch in a different location, or a standalone CPC that provides fitness sorting and authentication services only.
Can CPCs serve other banks or non-bank entities?
Yes, CPCs can serve other banks' branches and charge a reasonable fee at mutually agreed rates. Standalone CPCs can also serve merchant establishments, petrol pumps, etc., handling large cash volumes for a fee.