What changed
This circular supersedes all prior instructions on penal interest for delayed, wrong, or non-reporting of currency chest transactions. It consolidates rules into a single master circular, specifying reporting timelines, penal interest calculation on T+0 basis, and no maximum limit on penal interest.
What it means for you
Banks with currency chests must ensure strict same-day reporting by 9 PM to link offices and by 11 PM to RBI issue offices to avoid penal interest. Penal interest applies from the day of delay, with no cap, increasing financial risk for non-compliance. Inclusion of ineligible amounts in chest balances also triggers penalties.
What you must do
- Ensure all currency chest transactions are reported via ICCOMS by 9 PM on the same day to link offices.
- Verify link offices consolidate and report to RBI issue offices by 11 PM daily.
- Review chest slip and link office statement accuracy to avoid wrong reporting penalties.
- Confirm only cash held by joint custodians and freely available is included in chest balances.
- Set up internal alerts for T+0 penal interest calculation to prevent delays.
Who it affects
All banks with currency chests, Link offices of banks, Sub-Treasury Offices of state governments, RBI issue offices
What is the minimum transaction amount for currency chest reporting?
The minimum deposit or withdrawal amount is Rs. 1,00,000, and thereafter in multiples of Rs. 50,000.
Is there a maximum limit on penal interest for delayed reporting?
No, there is no maximum limit; penal interest is levied on all applicable cases, rounded to the nearest rupee.
What happens if a bank reports a transaction correctly in chest slips but wrongly in link office statements?
Penal interest will still be levied because debits/credits to current accounts are based on link office statements, not chest slips.