What changed
This master circular supersedes all prior instructions on penal interest for delayed, wrong, or non-reporting of currency chest transactions. It consolidates and clarifies the reporting timelines, penalty calculation basis (T+0), and specific penalties for misreporting soiled note remittances.
What it means for you
Banks with currency chests must ensure strict same-day reporting to avoid penal interest, which now starts from the transaction date itself. The flat Rs.50,000 penalty for misreporting soiled notes as withdrawals is a significant deterrent. With no maximum penalty cap, cumulative charges can escalate quickly for repeated errors.
What you must do
- Train chest and link office staff on ICCOMS reporting deadlines: chests by 9 PM, link offices by 11 PM.
- Implement internal checks to prevent wrong reporting, especially soiled note remittances and diversion entries.
- Monitor T+0 penalty calculation and set up alerts for any reporting delays or errors.
- Review current currency chest reporting processes to ensure compliance with the consolidated master circular.
Who it affects
All banks with currency chests, Link offices consolidating chest transactions, Sub-Treasury Offices reporting directly to RBI Issue Offices, State Government treasuries (as per enclosed list)
What is the minimum transaction amount for currency chest reporting?
The minimum deposit or withdrawal amount is Rs.1,00,000, and thereafter in multiples of Rs.50,000.
Is there a grace period for penal interest on delayed reporting?
RBI may grant a grace period at its discretion, but penal interest is calculated on a T+0 basis from the transaction date.
What is the penalty for wrongly reporting soiled note remittances as withdrawals?
A flat penalty of Rs.50,000 is levied, regardless of the remittance value or the duration of the wrong reporting.