What changed
RBI has expanded the incentive scheme for Note Sorting Machines (NSMs) to include all licensed State Co-operative Banks and District Central Co-operative Banks. Previously, this benefit was limited to RRBs and UCBs under the August 2013 circular.
What it means for you
Co-operative banks can now claim reimbursement of up to 50% of NSM installation cost in urban/metro areas and 75% in semi-urban/rural areas, improving cash management efficiency. This aligns with RBI's push for better currency handling across all bank types.
What you must do
- Verify eligibility for NSM installation cost reimbursement under the expanded scheme.
- Submit claims for NSM installations in line with the Master Circular dated July 1, 2013.
- Ensure compliance with all existing instructions on coin vending machines and NSMs.
- Acknowledge receipt of this circular to your regional RBI office.
Who it affects
All licensed State Co-operative Banks, District Central Co-operative Banks, Scheduled Commercial Banks (including RRBs and UCBs) already covered
What is the reimbursement percentage for NSM installation under this scheme?
Reimbursement is 50% of installation cost in urban/metropolitan areas and 75% in semi-urban and rural areas, as per the earlier circular.
Does this circular affect existing incentives for RRBs and UCBs?
No, the earlier scheme for RRBs and UCBs remains unchanged; this circular only extends the same benefits to co-operative banks.