What changed
RBI consolidated and updated all guidelines on the Currency Distribution & Exchange Scheme (CDES) into a single Master Direction, effective April 24, 2025, with updates as of September 29, 2025. The direction revises service charges for cash deposits by non-chest branches at currency chests, effective October 1, 2025: large modern CCs will charge ₹11 per 100 pieces (up from ₹8), and other CCs ₹8 per 100 pieces (up from ₹5). It also clarifies that incentives for soiled note exchange are paid only on notes actually received at RBI Issue Offices.
What it means for you
Banks can now claim higher service charges for cash handling at currency chests, improving revenue for chest-operating branches. The enhanced incentives for coin distribution in rural/semi-urban areas (additional ₹10 per bag) encourage better cash management in underserved regions. Banks must ensure accurate documentation, including concurrent auditor certificates for rural coin distribution, to claim full incentives.
What you must do
- Update internal SOPs to reflect revised service charges for non-chest branch cash deposits at CCs from October 1, 2025.
- Train branch staff on claiming incentives for soiled note exchange and mutilated note adjudication, ensuring proper record-keeping.
- Submit concurrent auditor certificates for coin distribution in rural/semi-urban areas to claim the additional ₹10 per bag incentive.
- Review new CC applications for North Eastern and remote areas to align with the revised capital cost reimbursement ceiling of ₹50 lakh.
Who it affects
All scheduled commercial banks with currency chests, Bank branches handling coin distribution and note exchange, Non-chest branches using linkage scheme with CCs, Banks operating in North Eastern region and remote areas of J&K and Ladakh
What is the incentive for exchanging soiled notes?
Banks receive ₹2 per packet for exchanging soiled notes in denominations of ₹50 and below, and ₹2 per piece for adjudicating mutilated notes, paid only on notes received at RBI Issue Offices.
When do the revised service charges for cash deposits at CCs take effect?
From October 1, 2025, large modern CCs will charge ₹11 per 100 pieces and other CCs ₹8 per 100 pieces for cash deposits from non-chest branches, up from the current ₹8 and ₹5 respectively.
Are there additional incentives for coin distribution in rural areas?
Yes, an extra ₹10 per bag is paid for coin distribution in rural and semi-urban areas, provided a concurrent auditor certificate is submitted to RBI.