Executive Summary:
This Master Direction from the Reserve Bank of India consolidates guidelines on penal provisions for inaccurate and delayed reporting of currency chest transactions and balances. It aims to ensure timely and accurate reporting to support the Clean Note Policy. Currency chests must report transactions via the CyMCC portal by 7 pm on the same day.
Key Points / Main Content:
* **Reporting Procedure**:
* Minimum deposit/withdrawal amount: ₹1,00,000 and multiples of ₹50,000.
* Transactions to be reported via CyMCC portal by 7 pm on the same day.
* For operational CCs on local holidays when CyMCC is available, report on the same day.
* For global holidays when CyMCC is unavailable, report denomination-wise consolidated amounts to the RBI Issue Office by email by 7 pm and on CyM the next working day.
* Strike-related relaxation considered case-by-case.
* **Penalties for Delayed/Wrong Reporting**:
* Penal interest levied for delays, calculated on T0 basis.
* Penal interest levied for wrong reporting until corrected advice received.
* Fresh/reissuable notes from RBI Note Printing Presses must not be reported as 'deposit' transactions.
* Penal interest levied for including ineligible amounts in currency chest balances.
* Penal measures for other deficiencies (shortages, pilferage, counterfeit notes) based on the prevailing Scheme of Penalties.
* **Specific Penalties**:
* ₹50,000 penalty for wrongly reporting soiled note remittances as withdrawals.
* ₹50,000 penalty for reporting diversions as deposits/withdrawals instead of using the CyMCC Diversion Module.
* ₹50,000 flat penalty for delayed reporting even with net deposit.
* **Rate of Penal Interest**:
* 2% over the prevailing Bank Rate for delayed/wrong reporting and inclusion of ineligible amounts.
* **Business Continuity Plan**:
* Banks should utilize CyMCC portal's user switching capability to avoid delayed reporting due to connectivity issues.
* Include this aspect in their CC Business Continuity Plan (BCP).
* **Operational Guidelines on Penalties**:
* Officer-in-Charge of the Issue Department of the Regional Office is the Competent Authority to decide on irregularity and levy penalty.
* **Appellate Authority**:
* Representations for genuine difficulties (hilly/remote areas, natural calamities) may be made to the Regional Director/Chief General Manager/Officer-in-Charge through the Head/Controlling office of the bank within a month from the date of debit, within the CyMCC portal.
* Waiver requests will only be considered if made via the CyMCC portal within prescribed timelines.
* Waiver requests are not considered for wrong reporting cases.
* Requests based on clerical errors, unintentional mistakes, staff inexperience, etc., are not valid grounds for waiver.
Impact Analysis:
**Currency Chest Holding Banks:**
* Impact: Financial penalties for non-compliance, need to update reporting procedures, and incorporate CyMCC user switching capability into their BCP.
* Action Required: Ensure timely and accurate reporting via CyMCC, train staff on proper reporting procedures, utilize the CyMCC user switching functionality, and update BCPs.
**Reserve Bank of India (RBI):**
* Impact: More accurate and timely data for currency management and monitoring of Clean Note Policy objectives.
* Action Required: Enforce penalties for non-compliance, provide support and guidance on CyMCC portal usage, and review/update guidelines as needed.
**Currency Chests:**
* Impact: Strict adherence to reporting timelines and procedures to avoid penalties; need to ensure proper custody of cash.
* Action Required: Report transactions on the same day, ensure accurate reporting of all transactions, maintain proper cash handling procedures, and utilize CyMCC portal features effectively.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for issuing guidelines and instructions for currency management and overseeing banking regulations.
RBI Act, 1934: The Reserve Bank of India Act, which provides the legal framework for the Reserve Bank of India's operations.
Banking Regulation Act, 1949: An act regulating banking companies in India.
Currency Chests: Designated branches of banks authorized by the Reserve Bank of India to store currency on its behalf.
CyMCC portal: A portal used by currency chests for reporting transactions to the Reserve Bank of India.
Clean Note Policy: An initiative by the Reserve Bank of India to improve the quality of banknotes in circulation.
Issue Office of RBI: Regional offices of the Reserve Bank of India responsible for currency management within their jurisdiction.
CRR SLR: Cash Reserve Ratio and Statutory Liquidity Ratio are the fraction of deposits that banks are required to maintain with RBI and in government securities respectively.
बेटी बचाओ
बेटी पढ़ाओ
भारतीय �रज़व� ब�क
_____________RESERVE BANK OF INDIA______________
www.rbi.org.in
RBI/DCM/2024-25/114
DCM (CC) No.G-2/03.35.01/2024-25 April 01, 2024
The Chairman / Managing Director / Chief Executive Officer
(All banks having Currency Chests)
Madam / Dear Sir,
Master Direction on Penal Provisions in reporting of transactions / balances at
Currency Chests
In terms of the Preamble to and Section 45 of the Reserve Bank of India Act, 1934 (RBI
Act) and Section 35A of the Banking Regulation Act, 1949, Reserve Bank of India issues
guidelines / instructions for realising the objectives of Clean Note Policy as part of
currency management. With a view to sustain these efforts and to ensure timely and
accurate reporting of currency chest transactions, instructions on the subject have been
issued from time to time.
2. The enclosed Master Direction incorporates updated guidelines / circulars on the
subject.
Yours faithfully,
(Sanjeev Prakash)
Chief General Manager
Encl : As above
मुद्रा प्रबंध िवभाग ,क�द्रीय काया�लय ,चौथी मंिजल, अमर भवन, सर पी .एम .रोड, मुंबई400001
DEPARTMENT OF CURRENCY MANAGEMENT, CENTRAL OFFICE, AMAR BUILDING, 4TH FLOOR, SIR P M ROAD, MUMBAI - 400001
फोन TELEPHONE No. 22663000 / 22604000 फै � FAX NO. 22662442
ई-मेल E-mail : cgmincdcm@rbi.org.in
िह�ी आसान है, इसका प्रयोग बढ़ाइएAnnex
Master Direction on Penal Provisions in reporting of transactions / balances at
Currency Chests
1. Reporting Procedure
1.1 Reporting of Currency Chest (CC) Transactions
The minimum amount of deposit into / withdrawal from currency chest shall be ₹1,00,000/-
and thereafter, in multiples of ₹50,000/-.
1.2 Time Limit for Reporting
1.2.1 The currency chests shall invariably report all transactions through CyM-CC portal
on the same day by 7 pm.
1.2.2 Opening of Currency Chests on Sundays or Holidays – Reporting in CyM
In case CyM CC portal is available on the day a specific CC is permitted to operate (i.e.
on a local holiday), the CC shall report the transactions in CyM on the same day. In case
CyM-CC portal is not available on the said day (i.e. on a global holiday / 2nd or 4th
Saturdays of the month / Sunday), the CC shall report denomination-wise consolidated
deposit and/ or withdrawal amount and denomination-wise chest closing balance of the
day by 7 pm to the concerned Issue Office of RBI by e-mail and report day’s transactions
on CyM on the next working day.
1.2.3 Relaxation in Respect of Strike in Banks
Relaxation in the reporting period on account of strike situation shall be considered on
case-to-case basis.2. Delayed Reporting / Wrong Reporting of Currency Chest Transactions
2.1 Levy of Penal Interest
2.1.1 Delay in Reporting
In the event of delay in reporting currency chest transactions, penal interest at the rate
indicated in paragraph 4 of this circular shall be levied on the amount due from the chest
holding bank for the period of delay. Penal interest shall be calculated on T+0 basis i.e.
penal interest shall be levied in respect of transactions not reported by currency chests
to the Issue Office on the same business day within the time limit prescribed above.
2.1.2 Wrong Reporting
Penal interest shall be levied in respect of cases of wrong reporting in the same manner
till the date of receipt of corrected advice by Reserve Bank. As debits / credits to banks'
current accounts are raised on the basis of the transactions reported by the currency
chests, penal interest shall invariably be levied in all cases of wrong reporting by the
currency chests. It is expected that currency chests would ensure the correctness of
figures reported on the CyM-CC portal. Particular care shall be taken to ensure that
remittances of fresh / re-issuable notes sent to the currency chests from RBI / Note
Printing Presses are not reported as 'deposit' transactions.
2.1.3 Inclusion of Ineligible Amounts in the Currency Chest Balances
(i) Penal interest shall also be levied in all cases where the bank has enjoyed 'ineligible'
credit in its current account with Reserve Bank on account of wrong reporting / delayed
reporting of transactions.
(ii) Only cash held in the custody of joint custodians and 'freely available' to them is eligible
for inclusion in the chest balances. Thus, cash kept outside the vault / outside the
coverage of CCTV cameras / cash kept for safe custody in sealed covers for whatever
reasons / in trunks / under single lock / unlocked / in bins under the lock and key of any
official/s other than the Joint Custodians or bearing a third lock put by any official inaddition to the two locks of the Joint Custodians, is not eligible for being included in the
chest balances. If such amounts are included in the chest balances, these shall be treated
as instances of wrong reporting and shall attract penal interest at the rate specified in
paragraph 4.
(iii) In all the above cases (excepting shortages in chest balances / remittances, shortages
due to pilferage / frauds, counterfeit banknotes detected in chest balances / remittances),
penal interest shall be levied from the date of inclusion of 'ineligible' amounts in chest
balances till the exclusion of such amounts from chest balances.
2.1.4 Penal Measures for Other Deficiencies
Penal measures for shortages in chest balances / remittances, shortages due to pilferage
/ frauds, counterfeit banknotes detected in chest balances / remittances shall be taken on
the basis of the prevailing “Scheme of Penalties”.
3. Levy of Penalty
3.1 Reporting of Soiled Note Remittances to RBI
Soiled note remittances to RBI shall not be shown as withdrawal by chest(s). In case such
remittances to RBI are wrongly reported as 'withdrawals', a penalty of ₹50,000/- shall be
levied irrespective of the value of remittance and period of such wrong reporting.
3.2 Reporting of Diversions in CyM-CC Portal
All currency chest diversions (both between chests of the same bank and between chests
of different banks) have to be reported through ‘Diversion Module’ of CyM-CC Portal. The
CC sending the diversion should initiate the entry. The receiving CC should acknowledge
the same. Diversions should not be reported as deposit / withdrawal. A penalty of
₹50,000/- shall be levied for any such wrong reporting.3.3 Delayed reporting where currency chests had “Net Deposit”
Penal interest at the prevailing rate for delayed reporting of the instances where the
currency chest had reported “net deposit” shall not be charged. However, in order to
ensure proper discipline in reporting currency chest transactions, a flat penalty of
₹50,000/- shall be levied on the currency chests for delayed reporting, irrespective of the
value of net deposit.
4. Rate of Penal Interest
Penal interest shall be levied at the rate of 2% over the prevailing Bank Rate for the period
of delayed reporting / wrong reporting / inclusion of ineligible amounts in chest balances.
5. Business Continuity Plan
The CyM-CC portal has the capability for switching / interchanging the user within a bank
across the country (user manual is attached for ready reference). If a CC is unable to
report daily transactions in CyM Portal due to connectivity or other technical issues in that
particular CC, the Back Office (BO) Administrator of the bank can map the user-id of
another CC of that bank to the CC having connectivity issues for reporting of daily
transactions. On completion of the transactions the user rights shall be restored to the
original CC. This functionality would help CCs in avoiding delayed reporting and
consequent punitive action. CC holding banks are advised to include this aspect in their
CC Business Continuity Plan (BCP).
6. Operational Guidelines on Levy of Penalties / Penal Interest
6.1 Competent Authority
The Competent Authority to decide on the nature of irregularity and levy penalty
thereof shall be the Officer-in-Charge of the Issue Department of the Regional Office
under whose jurisdiction the defaulting currency chest is located.6.2 Appellate Authority
6.2.1 Given the business continuity capability provided by the CyM (see paragraph 5
above), there should ordinarily be no occasion for banks to request for reconsideration of
the Reserve Bank's decision. However, representations, if any, on account of genuine
difficulties faced by currency chests especially in hilly / remote areas and those affected
by natural calamities, etc., may be made to the Regional Director / Chief General Manager
/ Officer-in-Charge of the Regional Office concerned through the Head / Controlling office
of the bank within a month from the date of debit.
6.2.2 Any penalty / penal interest waiver request shall be considered, only if the
application for the same is made in the CyM-CC portal within the prescribed timelines.
Waiver request in any other mode shall not be considered.
6.2.3 In the case of wrong reporting, representation for waiver shall not be considered.
{cf. para 2.1.2 above}.
6.2.4 As the intention behind the levy of penal interest / penalty is to inculcate discipline
among banks so as to ensure prompt / correct reporting, requests by banks for waiver of
penal interest on grounds that delayed / wrong reporting did not result in utilisation of the
Reserve Bank's funds or shortfall in the maintenance of CRR / SLR or that they were the
result of clerical mistakes, unintentional or arithmetical errors, first time error,
inexperience of staff, expiry of digital certificate, etc., shall not be considered as valid
grounds for waiver of penal interest.
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