This Reserve Bank of India (RBI) circular, DCM Plg No. 2746/10.25.07/2018-19, dated May 14, 2019, addresses the outsourcing of cash management and reconciliation of transactions, specifically ATM cash replenishment. It follows up on the monetary policy statement of October 4, 2016, and the recommendations of the Committee on Currency Movement, chaired by Shri D.K. Mohanty.
The circular mandates that banks implement the following procedures: service providers must submit cash indents at least one day (T-1) in advance of cash loading (T), in consultation with the chest nodal branch, restricting cash withdrawal points to one per center, with a maximum of two in metropolitan centers. Reconciliation of transactions between the bank, service provider, and subcontractors must occur at least on a T+3 basis. In case of disputes or alleged security breaches, banks should provide video footage of the ATM to the service provider and subcontractors upon request.
Furthermore, the RBI encourages banks to urge their service providers and subcontractors to adopt an efficient digital records management system for data retrieval and reconciliation, and to create and maintain an industry-level database of employees with unique identification codes to ensure unblemished records, potentially through a Self-Regulatory Organization.
The Department of Currency Management at the RBI (4th Floor, Amar Building, P.M. Road, Fort, Mumbai – 400001) can be contacted at Phone: 022-2260 3000/4000, Fax: 022-2266 2442, or Email: cgmincdcm@rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, also referred to as 'the Bank' in the document, which issued the policy regarding outsourcing of cash management.
Shri D.K. Mohanty: Executive Director, Reserve Bank of India and Chair of the Committee on Currency Movement.
Committee on Currency Movement: A committee constituted by the Reserve Bank of India to review the security of treasure in transit.
ATM: Automated Teller Machine. Mentioned in the context of cash replenishment and video footage access.
Mumbai, Maharashtra: City in India where the Department of Currency Management, Reserve Bank of India is located.
Department of Currency Management: A department within the Reserve Bank of India responsible for currency management.
Self Regulatory Organisation: An industry level body that can provide unique mode code of identification to maintain database of employees.
Sanjay Kumar: General Manager at Reserve Bank of India.
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2018-19/183
DCM (Plg) No.2746/10.25.07/2018-19 May 14, 2019
The Chairman / Managing Director /
Chief Executive Officer
All Banks
Madam / Dear Sir,
Outsourcing of Cash Management – Reconciliation of Transactions
As stated in para 15 of the monetary policy statement dated October 04, 2016, the
Bank had constituted a Committee on Currency Movement [Chair: Shri D.K.
Mohanty, Executive Director, Reserve Bank of India] to review the entire gamut of
security of the treasure in transit. The recommendations of the Committee relating to
timely reconciliation of transactions (i.e. ATM cash replenishment) between the bank,
the service provider and its sub-contractor have been examined. Accordingly, it has
been decided that the bank shall follow the procedure as under:
a. Cash indents by the Service Provider shall be made at least a day in
advance (T-1 where T is the day of cash loading), in consultation with the chest /
nodal branch. Multiple points of cash withdrawal may be avoided and shall be
restricted to one in each centre. However, metropolitan centres may have two
points of cash withdrawal.
b. Reconciliation of transactions shall be done between the bank, the service
provider and its sub-contractors at least on a T+3 basis.
c. In the event of a dispute or the reporting of alleged / attempted breach of
security / laid down procedures, access to video footage of the ATM may be
provided by the bank to the service provider and its sub-contractors on request.
2. Further, as a part of outsourcing arrangements for cash management, the
bank shall encourage their service provider and its sub-contractors to:
a. put in place an efficient digital records management system for data
retrieval and reconciliation.
__________________________________________________________________________________________________________
मु�ा �बधं िवभाग, 4था तल, अमर भवन, पी.एम. माग,र् फोटर्, मुंबई 400001
Department of Currency Management, 4th Floor, Amar Building, P.M. Road, Fort, Mumbai 400001
फोन/Phone: (022) 2260 3000 / 4000 फैक्स/Fax: (022) 2266 2442 ईमले /E-mail: cgmincdcm@rbi.org.in
�हदी आसान है इसका �योग बढ़ाइय |
चेतावनीः �रज़वर् बक� �ारा ई-मेल, डाक, एसएमएस या फोन-कॉल के ज�रए �कसी क� भी �ि�गत जानकारी जैस ेबक� के खाते का ब्यौरा,
पासवडर् आ�द नह� मांगी जाती है। यह धन रखने या देने का �स्ताव भी नह� करता है। ऐसे �स्ताव� का �कसी भी तरीके स ेजवाब मत दीिजए।
Caution: RBI never sends mails. SMSs or makes calls asking for personal information like bank account details,
passwords, etc. It never keeps or offers funds to anyone. Please do not respond in any manner to such offers.b. create and maintain a data base of employees at industry level through
any unique mode / code of identification by the Self Regulatory Organisation to
ensure that they possess unblemished records.
Yours faithfully,
(Sanjay Kumar)
General Manager