HomeCirculars › RBI/2013-14/322

RBI Allows CIT Entities for Banknote Distribution

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/322 · issued 10 Oct 2013 · ~1 min read
Quick answerRBI advises banks to explore using Cash-in-Transit (CIT) entities for distributing banknotes and coins, alongside Business Correspondents, to improve last-mile connectivity and meet growing currency demand.

What changed

RBI advised banks to explore engaging Cash-in-Transit (CIT) entities for banknote and coin distribution, in addition to Business Correspondents (BCs) as previously suggested. Banks are now advised to consider CIT firms for currency distribution.

What it means for you

Banks may consider leveraging CIT firms' logistics expertise to reach remote areas more efficiently, potentially reducing pressure on branch networks. This move aims to address last-mile connectivity issues and ensure adequate currency supply. Lenders should review their current distribution models and consider partnerships with CIT providers.

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 including RRBs, Business Correspondents (BCs), Cash-in-Transit (CIT) entities, Bank customers in remote areas

❓ 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 main change introduced by this circular?

RBI advises banks to explore using Cash-in-Transit (CIT) entities for distributing banknotes and coins, in addition to Business Correspondents, to improve last-mile connectivity.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Clarified by RBI Boosts Coin Distribution Incentives to ₹65 per Bag
RBI’s words: “Attention is also invited to circular DCM (Plg) No. G - 14/10.65.03/2013-14 dated October 10, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/322 DCM (Plg) No. G - 14/10.65.03/2013-14 October 10, 2013 The Chairman & Managing Director / Chief Executive Officer (All Scheduled Commercial banks including RRBs) Madam/ Dear Sir, Monetary Policy Statement for 2013-14-Distribution of Banknotes and Coins – Alternative Avenues Please refer to Para 110 of the Monetary Policy Statement 2013-14 wherein it was stated that “With a view to effectively meeting the growing demand for banknotes and coins in the country, there is a need for identification of alternative avenues for their distribution by banks. For this purpose, banks may explore the possibility of offering these services through Business Correspondents (BC) and consider engaging the services of Cash in Transit (CIT) entities for the purpose of distribution of banknotes and coins, thereby addressing the last mile connectivity issues.” 2. We invite attention to our circular DCM (Plg) No. G 12/10.65.03/2013-14 dated September 10, 2013 advising you to explore the possibility of enlisting the services of BCs for carrying out the various currency management functions. 3. Banks are advised to explore the possibility of engaging the services of Cash in Transit (CIT) entities also for the purpose of distribution of banknotes and coins. 4. Please acknowledge receipt. Yours faithfully (B P Vijayendra) Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/322 · issued 10 Oct 2013. 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=8505&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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