**Summary:**
RBI Circular RBI201617169 DCM Plg No. 1508/10.27.00201617, dated December 02, 2016, addresses the allocation of banknotes by banks maintaining currency chests. This circular is a continuation of the advisory issued on November 22, 2016 (DCM Plg No.1345/10.27.00201617) regarding making cash available for the Rabi crop season.
The circular advises banks to involve district coordinators (Lead District Managers) functioning under the State Level Bankers Committee (SLBC) to facilitate the planning and distribution of currency from currency chests, specifically to rural branches, post offices, and District Central Cooperative Banks (DCCBs).
Furthermore, the circular addresses a perception that banks with currency chests prioritize supplying cash to their own branches. These banks are instructed to make visible efforts to dispel this perception of unequal allocation among other banks and their own branches.
For further information, Suman Ray, General Manager, can be contacted.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking system.
DCM Plg No. 1345/10.27.002016-17: Reference to a previous circular issued by the Reserve Bank of India.
Rabi Crop Season: The winter cropping season in India.
District Central Cooperative Banks (DCCBs): Cooperative banks operating at the district level in India.
District Coordinators: Individuals responsible for coordinating activities at the district level.
Lead District Managers: Bank officials responsible for coordinating banking activities in a specific district.
State Level Bankers Committee (SLBC): A committee at the state level comprising representatives from various banks to coordinate banking activities.
Suman Ray: General Manager at Reserve Bank of India, the signatory of the circular.
RBI/2016-17/169
DCM (Plg) No. 1508/10.27.00/2016-17 December 02, 2016
The Chairman / Managing Director/ Chief Executive Officer
(All banks maintaining currency chests)
Dear Sir,
Allocation of banknotes
Please refer to our circular DCM (Plg) No.1345/10.27.00/2016-17 dated November
22, 2016 On “Making cash available for Rabi Crop Season – Advisory to banks”.
2. In continuation of the above and to ensure that adequate allocation of banknotes
are made for the rural branches, post offices and DCCBs, the banks are advised to
involve the district co-ordinators (Lead District Managers) functioning under the aegis
of the State Level Bankers’ Committee (SLBC) in facilitating / planning distribution of
currency from the currency chests.
3. A perception has also emerged that banks with currency chests are according
priority towards supplying cash to their own bank branches. These banks with
currency chests are, therefore, advised to make visible efforts to dispel the
perception of unequal allocation among other banks and their own branches.
Yours faithfully,
(Suman Ray)
General Manager