What changed
RBI issued a Master Direction consolidating all existing guidelines on penal provisions for currency chest transaction reporting. The direction codifies reporting procedures, time limits, and penal interest rates for delays or wrong reporting. It also clarifies treatment of ineligible amounts in chest balances.
What it means for you
Banks with currency chests face stricter accountability for timely and accurate reporting. Penal interest will be levied on a T+0 basis for delays, and wrong reports attract interest until corrected. Banks must ensure only freely available cash in joint custody is counted in chest balances to avoid ineligible credits.
What you must do
- Ensure all currency chest transactions are reported on CyM-CC by 7 PM on the same business day.
- Verify that deposit/withdrawal amounts are in multiples of ₹1 lakh and ₹50,000 respectively.
- Train chest staff to avoid wrong reporting, especially misclassifying note remittances as deposits.
- Review chest cash custody procedures to exclude ineligible amounts from reported balances.
- Establish a process for reporting on holidays when CyM-CC is unavailable, using email to Issue Office.
Who it affects
All banks operating currency chests, Currency chest managers and reporting staff, RBI Issue Offices handling chest transactions
What is the penalty for delayed reporting of currency chest transactions?
Penal interest is levied on the amount due from the chest-holding bank for the period of delay, calculated on a T+0 basis from the same business day.
How should chests report transactions on holidays when CyM-CC is unavailable?
On global holidays, 2nd/4th Saturdays, or Sundays, chests must email denomination-wise consolidated deposit/withdrawal amounts and closing balance to the concerned RBI Issue Office by 7 PM, then report on CyM-CC the next working day.
What amounts are eligible for inclusion in currency chest balances?
Only cash held in the custody of joint custodians and freely available to them is eligible. Cash kept outside vaults, under single lock, or in sealed covers is ineligible.