What changed
RBI consolidated and updated all previous circulars on penal provisions for currency chest reporting into a single Master Direction. The direction specifies minimum transaction amounts (₹1 lakh, multiples of ₹50,000), same-day reporting deadline (7 pm via CyM-CC), and penal interest for delays, wrong reporting, or inclusion of ineligible amounts in chest balances.
What it means for you
Banks with currency chests must ensure accurate and timely reporting to avoid penal interest charges that hit their current accounts with RBI. The T+0 penal interest calculation means any delay or error triggers immediate financial penalty. Inclusion of ineligible cash (e.g., sealed covers, third-lock bins) in chest balances is treated as wrong reporting and attracts penalties.
What you must do
- Ensure all currency chest transactions are reported on CyM-CC portal by 7 pm on the same business day.
- Verify that only cash held by joint custodians and freely available is included in chest balances; exclude sealed covers or third-lock items.
- Train chest staff to correctly classify transactions (e.g., fresh notes from RBI/press as remittances, not deposits) to avoid wrong reporting.
- Set up internal alerts for T+0 compliance to catch delays or errors before penal interest accrues.
- Review current chest reporting processes and reconcile with RBI's updated Master Direction.
Who it affects
All banks operating currency chests, Currency chest managers and reporting staff, Bank treasury and compliance teams, RBI Issue Offices monitoring chest transactions
What is the minimum transaction amount for currency chest deposits/withdrawals?
The minimum amount is ₹1,00,000, and thereafter in multiples of ₹50,000.
How is penal interest calculated for delayed reporting?
Penal interest is levied on T+0 basis, meaning from the same business day the transaction was due, at the rate specified in the direction, until the correct report is filed.
What types of cash are ineligible for inclusion in chest balances?
Cash kept in sealed covers, trunks/bins under lock of non-joint custodians, or with a third lock beyond the two joint custodian locks is ineligible and its inclusion attracts penal interest.