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RBI Withdraws Circular on Penal Interest for Delayed Reporting

Current · Source: Reserve Bank of India · RBI/2022-23/40 · issued 02 May 2022 · ~1 min read

Quick answerRBI has withdrawn a February 2018 circular on penal interest for delayed reporting by currency chest banks, effective May 2, 2022. Banks no longer face that specific penalty for late submissions.

The rule, in the simplest words

Banks with currency chests no longer face penal interest for delayed reporting.
The RBI withdrew a February 2018 circular on penal interest for delayed reporting.
Banks must update their internal compliance checklists and inform staff about this change.

How it plays out — a real example

A currency chest manager in Mumbai, Mr. Kumar, no longer needs to calculate and remit penal interest for delayed reporting. He can now focus on ensuring timely submissions, reducing the compliance burden on his team and the bank. This change simplifies reporting requirements and reduces potential financial penalties.

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Banks operating currency chests are no longer liable to pay penal interest under the withdrawn circular for delayed reporting.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Update internal compliance checklists to remove references to the withdrawn circular on penal interest for delayed reporting.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Monitor RBI notifications for any new reporting requirements or penalties that may replace the withdrawn circular.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

❓ Common questions

Regulatory timeline

Stated effective date effective May 2, 2022
Decoded by BankPulse 2026-06-18 06:17 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

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.

📜 Read the original circular — full text as issued by RBI

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 180 kb ) Regulations Review Authority (RRA 2.0) – Interim Recommendations – Withdrawal of Circulars RBI/2022-23/40 DCM (Admin) No. S172/19.01.010/2022-23 May 02, 2022 All Banks having Currency Chests Madam/ Dear Sir, Regulations Review Authority (RRA 2.0) – Interim Recommendations – Withdrawal of Circulars Please refer to the Press Release dated May 02, 2022 issued on the captioned subject. 2. The circular listed in the Annex is withdrawn with effect from close of business today. Yours faithfully, (Suman Ray) Chief General Manager-in-Charge Encl: As above Annex List of Circulars withdrawn Sr No. Circular No. Date Subject 1. DCM (CC) No. 2885/03.35.01/2017-18 February 09, 2018 Levy of Penal Interest – Delayed Reporting 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn &copy; Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/40 · issued 02 May 2022. The plain-English explanation above is BankPulse’s own independent summary.

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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All banks operating currency chests, Treasury and compliance departments of scheduled commercial banks, Currency chest managers and reporting officers), your first concrete step on “RBI Withdraws Circular on Penal Interest for Delayed Reporting” is: “Update internal compliance checklists to remove references to the withdrawn circular on penal interest for delayed reporting.” (RBI issued this 02 May 2022).

Circular: RBI/2022-23/40 -- RBI Withdraws Circular on Penal Interest for Delayed Reporting
Issued: 02 May 2022
Action required: Update internal compliance checklists to remove references to the withdrawn circular on penal interest for delayed reporting.
Action required: Ensure staff handling currency chest reporting are aware of this change and no longer calculate or remit penal interest under that specific circular.
Action required: Monitor RBI notifications for any new reporting requirements or penalties that may replace the withdrawn circular.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12306&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.