What changed
RBI consolidated and updated all previous circulars on currency chest reporting penalties into a single Master Direction. Key provisions include mandatory same-day reporting by 7 PM via CyM-CC portal, penal interest on T+0 basis (same business day) for delays, and penal interest for wrong reporting until corrected advice received. Minimum transaction threshold remains ₹1 lakh, with multiples of ₹50,000.
What it means for you
Banks with currency chests face stricter compliance and financial penalties for reporting lapses. Penal interest on delayed or wrong reporting will be levied from the transaction date itself, increasing operational risk. Banks must ensure accurate and timely data entry on CyM-CC, especially for note remittances from RBI or printing presses, to avoid ineligible credits in current accounts.
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 deposit/withdrawal amounts are at least ₹1 lakh and in multiples of ₹50,000.
- Train chest staff to avoid wrong reporting, especially misclassifying remittances from RBI/printing presses as deposits.
- Set up internal alerts for Sunday/holiday operations to report via email if CyM-CC is unavailable.
- Review current account credits regularly to identify and rectify any ineligible amounts from reporting errors.
Who it affects
All banks operating currency chests, Currency chest managers and reporting staff, Bank treasury and compliance teams, 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 transaction date (same business day) until the date of correct reporting.
How should banks report transactions on Sundays or holidays?
If CyM-CC portal is available, report same day. If not (e.g., global holiday, 2nd/4th Saturday, Sunday), send denomination-wise consolidated deposit/withdrawal amount and chest closing balance by email to the concerned RBI Issue Office by 7 PM, and report on CyM the next working day.