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Master Direction on Incentives and Penalties for Currency Operations

Quick answerRBI issues guidelines for incentives and penalties to enhance currency management efficiency and customer service.

What changed

RBI has formulated a Scheme of incentives to encourage banks for setting up Currency Chest (CC) infrastructure and facilitating distribution/exchange of notes and coins. Additionally, a Scheme of penal interest/penalties has been prescribed to ensure accurate and timely reporting of CC transactions and provision of proper customer service.

What it means for you

This Master Direction aims to enhance the operational efficiency of currency management and improve customer service. Banks must ensure timely and accurate reporting of CC transactions and provide proper customer service to avoid penalties.

What you must do

Who it affects

All banks, Bank branches, Currency Chests (CCs), ATMs

What is the purpose of this Master Direction?

To enhance the operational efficiency of currency management and improve customer service.

What are the incentives for banks?

Banks will receive incentives for setting up Currency Chest (CC) infrastructure and facilitating distribution/exchange of notes and coins.

What are the penalties for deficiency in rendering customer service?

Banks will be penalized for deficiency in rendering customer service, including penalties for ATM cash-out and deficiency in operations of CCs.

Official source: RBI/DCM/2026-27/393 on rbi.org.in ↗
AI-drafted · 3-model AI consensus fact-check · under the editorial review of Vikram Jain · published · 19 Jun 2026, 01:17 IST