What changed
RBI issued this circular after a specific incident where soiled note packing was done outside the strong room, not captured by CCTV, leading to a detected shortage. The circular reiterates existing instructions from January 2008 and the Currency Chest Memorandum, emphasizing that Potdar must accompany remittances.
What it means for you
Banks must ensure CCTV coverage extends to all cash handling areas, not just vaults, to prevent fraud or errors. Non-compliance can lead to shortages and regulatory scrutiny. This reinforces the need for strict adherence to remittance procedures, including Potdar accompaniment.
What you must do
- Verify that CCTV cameras cover all cash handling operations in currency chests, including packing of soiled notes outside strong rooms.
- Ensure Potdar from the remitting bank accompanies every soiled note remittance as per the Currency Chest Memorandum.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
- Review and reinforce all existing instructions on soiled note remittance with chest staff.
Who it affects
All banks operating currency chests, Currency chest managers and staff, Regional offices of RBI overseeing currency chests
What triggered this circular?
A specific incident where soiled note packing was done outside the strong room, not under CCTV, leading to a detected shortage during remittance takeover by RBI.
What are the key compliance requirements?
CCTV must cover all cash handling areas, including packing operations. Potdar must accompany soiled note remittances. All prior instructions on remittance must be followed meticulously.