Master Direction – Scheme of Penalties for bank branches and Currency Chests for deficiency in rendering customer service to the members of public

बेट� बचाओ बेट� पढ़ाओ भारतीय �रज़व� ब�क _____________ RESERVE BANK OF INDIA______________ www.rbi.org.in RBI/DCM/2024-25/112 DCM (CC) No.G-1/03.44.01/2024-25 April 01, 2024 The Chairman / Managing Director / Chief Executive Officer All banks Madam / Dear Sir, Master Direction – Scheme of Penalties for bank branches and Currency Chests for deficiency in rendering customer service to the members of public 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 and enhancing the operational efficiency as part of currency management. In order to ensure that all bank branches provide proper customer service, the Bank has formulated a Scheme of Penalties for bank branches including Currency Chests, for deficiency in rendering customer service to the members of public. 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, मुंबई - 400 001 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 the Scheme of Penalties for bank branches and currency chests for deficiency in rendering customer service to members of public 1. The Scheme of Penalties for bank branches including currency chests has been formulated in order to ensure that all bank branches / currency chests provide proper customer service to the members of public / linked bank branches keeping in view the objectives of Clean Note Policy and enhancing operational efficiency. 2. Penalties Penalties to be imposed on banks for deficiencies in remittances sent to RBI, compliance with operational guidelines and Memorandum of Agreement, exchange of notes and coins, operations of currency chests, replenishment of cash in ATMs, etc., are as follows: Sr. Nature of Irregularity Penalty No. i. Shortages of notes in soiled note For notes in denomination up to ₹50 remittances and shortages of notes and coins in currency chest balances ₹50/- per piece in addition to the loss. For notes in denomination of ₹100 & above Equal to the value of the denomination per piece in addition to the loss. For coins in all denominations Equal to the value of the denomination per piece in addition to the loss. The recovery of loss and imposition of penalty shall be done immediately on detection of shortage, irrespective of number of pieces. ii. Counterfeit notes detected in soiled Penalty shall be levied in terms of the note remittances and currency chest instructions issued by DCM (FNVD) No. balances G-4/16.01.05/2024-25 dated April 01, 2024.iii. Mutilated notes (including deliberately ₹50/- per piece irrespective of the cut notes and built-up notes) detected denomination in addition to the loss. in soiled note remittances and currency chest balances The recovery of loss and imposition of penalty shall be done immediately on detection, irrespective of number of pieces. iv. Non-compliance with operational Penalty of ₹5,000/- for each instance of guidelines by currency chests detected irregularity. by RBI officials e.g. Penalty shall be enhanced to ₹10,000/- a) Non-functioning of CCTV, non- in case of repetition / recurrence of compliance with rules / guidelines irregularity in consecutive inspection pertaining to CCTV, recording cycles or earlier. preservation period and related issues Penalty shall be levied immediately. b) Branch cash / documents kept in strong room (CC’s vault) c) Non-utilisation of Note Sorting Machines (NSMs) for sorting of notes (NSMs not used for sorting of high denomination notes, i.e. notes of denomination ₹100 and above, received over the counter or not used for sorting notes remitted to chest / RBI) d) Non-conduct of surprise verification of currency chest balances - at (i) bimonthly intervals by officials unconnected with the operations of currency chest, and (ii) six-monthly intervals by officials from the Controlling Officev. Violation of any of the terms of ₹10,000/- for any violation of agreement with RBI (for opening and agreement or deficiency of service. maintaining currency chests) or deficiency in service in providing ₹5 lakh in case there are more than 5 exchange facilities, as detected by RBI instances of violation of agreement / officials e.g. deficiency in service by the currency chest / branch in consecutive a) Non-issue of coins over the counter inspection cycles or earlier. The levy of to any member of public despite having such penalty shall be placed in public stock. domain. b) Refusal by any bank branch to Penalty shall be levied immediately. exchange soiled notes / refusal by any currency chest branch to adjudicate mutilated notes tendered by any member of public. c) Denial of facilities / services to linked branches / linked CCs of other banks. d) Non acceptance of lower denomination notes (i.e. denomination of ₹50 and below) tendered by members of public and linked bank branches for exchange / deposit. e) Detection by RBI of mutilated, built up, counterfeit notes in re-issuable packets prepared by the currency chest branches. vi. Non-replenishment of ATMs Penalty shall be levied in terms of provisions of circular DCM(RMMT) No. S153/11.01.01/2021-22 dated August 10, 2021 and instructions issued subsequently. 3. Operational Guidelines on levy of penalties 3.1 Competent Authority The Competent Authority to decide upon the nature of irregularity shall be the Officer- in-Charge of the Issue Department of the Regional Office under whose jurisdiction the defaulting currency chest / bank branch is located.3.2 Appellate Authority i. Appeal against the decision of the Competent Authority may be made by the Controlling Office of the currency chest / branch to the Regional Director / Chief General Manager / Officer-in-Charge of the Regional Office concerned, within one month from the date of debit, who shall decide whether the same can be accepted / rejected. Penalty waiver request would be considered only if the application for the same is made in the CyM-CC portal within the prescribed timelines. Waiver requests in any other mode shall not be entertained. Appeals shall not be made in routine manner. ii. Appeals for waiver of penalty made on grounds such as staff being new / untrained, lack of awareness, corrective action having been taken / shall be taken, etc., shall not be considered.