Laws and sections by number or title, due dates, pages, and updates.
Banks and state governments operating currency chests must report all transactions through ICCOMS on the same day by 9 PM, and link offices must report to issue offices by 11 PM. Penal interest is levied at the rate of two percent over the prevailing Bank Rate for delayed reporting, wrong reporting, non-reporting, or inclusion of ineligible amounts in chest balances. Representations against penal interest require submission within one month of the debit date.
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Ask about this master direction
RBI/DCM/2018-19/62 Master Direction DCM (CC) No. G - 5/03.35.01/2018-19 July 3, 2018
Madam / Dear Sir
Master Direction on Levy of Penal Interest for Delayed Reporting / Wrong Reporting / Non-Reporting of Currency Chest Transactions and Inclusion of Ineligible Amounts in Currency Chest Balances
In terms of the Preamble, under Section 45 of the RBI Act, 1934 and 35 A of the Banking Regulation Act, 1949, the Bank issues guidelines / instructions for realising the objectives of our Clean Note Policy. With a view to sustain these efforts and ensure discipline among the banks on timely and accurate reporting of currency chest transactions, we have issued instructions on the subject.
The Master Direction enclosed incorporates updated guidelines / circulars on the subject. The Direction will be updated from time to time as and when fresh instructions are issued.
This Master Direction has been placed on RBI website at www.rbi.org.in.
Yours faithfully,
(Manas Ranjan Mohanty) Chief General Manager
Encl : As above
Annex
1.1 Reporting of Currency Chest Transactions The minimum amount of deposit into / withdrawal from currency chest will be ₹ 1,00,000 and thereafter, in multiples of ₹ 50,000.
1.2 Time limit for Reporting
1.3 Levy of penal interest for delays
1.4 Wrong reporting and levy of penal interest Penal interest will be levied in respect of all 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 figures reported in the Link Office Statements, penal interest will invariably be levied in all cases of wrong reporting in the Link Office Statements even if the reporting was done correctly in the chest slips. It is expected that Link Offices would ensure the correctness of figures reported by the respective currency chests. Particular care should be taken to ensure that remittances of fresh notes/notes to the currency chests are not reported as 'deposit' transactions in the Link Office Statements.
1.5 Reporting of Soiled note remittances to RBI / diversion to other chests Soiled note remittances to RBI / diversion to other currency chest/s should not be shown as withdrawal by chest/s / link offices. In case such remittances are wrongly reported as 'withdrawals', a penalty of ₹ 50,000 will be levied irrespective of the value of remittance and period of such wrong reporting.
1.6 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” may not be charged. However, in order to ensure proper discipline in reporting in reporting currency chest transactions, a flat penalty of ₹ 50,000 may be levied on the currency chests for delayed reporting irrespective of the value of net deposit.
1.7 Reporting of diversions in ICCOMS As regards reporting of diversion/s in ICCOMS, they must be reported in the column "2A and 4 A" i.e. the chest receiving the diversion should report under 2 A and the remitting chest should report the amount under 4A in the chest slip without any delay. Diversion amounts, even to the chest of the same bank should not be reported under "Withdrawal" and "Deposit" columns i.e. 4E and 2E (which are for currency transfer transactions).
1.8 Maximum penal interest to be charged There is no stipulation regarding the maximum amount of penal interest leviable for wrong / delayed reporting. As the intention is to ensure timely and correct reporting of chest transactions, penal interest will be recovered in all applicable cases, irrespective of the amount of the transaction concerned / amount of penal interest subject to rounding off the penal interest amount to the nearest Rupee.
2.1 Penal interest will 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 / non-reporting of transactions. Penal measures will also be taken in cases of shortages in chest balances / remittances, shortages due to pilferage / frauds, counterfeit banknotes detected in chest balances / remittances as per the prevailing “scheme of Penalties”.
2.2 Further, 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 for safe custody in sealed covers for whatever reasons/cash in trunks/bins under the lock and key of any official/s other than the Joint Custodians or bearing a third lock put by any official in addition 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 will be treated as instances of wrong reporting and will attract penal interest at the rate specified in para 3.
2.3 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 will be levied from the date of inclusion of 'ineligible' amounts in chest balances till the exclusion of such amounts from chest balances. Penal measures for shortages in chest balances / remittances, shortages due to pilferage / frauds, counterfeit banknotes detected in chest balances / remittances will be taken on the basis of prevailing “scheme of Penalties”.
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/non-reporting /inclusion of ineligible amounts in chest balances.
Levy of penal interest in respect of currency chests at treasuries The above instructions shall be applicable to currency chests at treasury/sub-treasury offices also.
Representations
