What changed
RBI withdrew the circular DCM (CC) No. 2885/03.35.01/2017-18 dated February 9, 2018, which had imposed penal interest for delayed reporting by banks with currency chests. The withdrawal took effect from the close of business on May 2, 2022, as part of the Regulations Review Authority (RRA 2.0) interim recommendations.
What it means for you
Banks operating currency chests are no longer liable to pay penal interest under the withdrawn circular for delayed reporting. This reduces compliance burden and potential financial penalties, simplifying reporting requirements. However, other reporting obligations under separate circulars remain unchanged.
What you must do
- Update internal compliance checklists to remove references to the withdrawn circular on penal interest for delayed reporting.
- Ensure staff handling currency chest reporting are aware of this change and no longer calculate or remit penal interest under that specific circular.
- Monitor RBI notifications for any new reporting requirements or penalties that may replace the withdrawn circular.
Who it affects
All banks operating currency chests, Treasury and compliance departments of scheduled commercial banks, Currency chest managers and reporting officers
Does this withdrawal mean no penalties for delayed reporting at all?
No. Only the specific penal interest circular from February 2018 is withdrawn. Other RBI circulars on reporting timelines and penalties remain in force. Banks must continue to comply with all other reporting requirements.
When did this withdrawal take effect?
The withdrawal was effective from the close of business on May 2, 2022, as stated in the RBI notification.
Why was this circular withdrawn?
The withdrawal is part of the Regulations Review Authority (RRA 2.0) interim recommendations aimed at streamlining and reducing regulatory burden by removing outdated or redundant circulars.