HomeCirculars › RBI/DCM/2026-27/393

Master Direction on Incentives and Penalties for Currency Operations

Live · in forceNo withdrawal recorded as of 20 Jun 2026. Reviewed by Vikram Jain; always verify against the official RBI source below.
Issued by RBI: 01 Apr 2026  ·  Decoded by BankPulse: 19 Jun 2026, 01:17 IST
⏱ ~1 min read
📄 Official RBI source ↗
Quick answerRBI issues guidelines for incentives and penalties to enhance currency management efficiency and customer service.

What changed

RBI has formulated a Scheme of incentives to encourage banks for setting up Currency Chest (CC) infrastructure and facilitating distribution/exchange of notes and coins. Additionally, a Scheme of penal interest/penalties has been prescribed to ensure accurate and timely reporting of CC transactions and provision of proper customer service.

What it means for you

This Master Direction aims to enhance the operational efficiency of currency management and improve customer service. Banks must ensure timely and accurate reporting of CC transactions and provide proper customer service to avoid penalties.

What you must do

Who it affects

All banks, Bank branches, Currency Chests (CCs), ATMs

What is the purpose of this Master Direction?

To enhance the operational efficiency of currency management and improve customer service.

What are the incentives for banks?

Banks will receive incentives for setting up Currency Chest (CC) infrastructure and facilitating distribution/exchange of notes and coins.

What are the penalties for deficiency in rendering customer service?

Banks will be penalized for deficiency in rendering customer service, including penalties for ATM cash-out and deficiency in operations of CCs.

Track this rule
🗂 Master Direction family: Currency Management⏳ How this rule evolved — History Map →Full RBI rulebook crosswalk →
AI-drafted · 3-model AI consensus fact-check · under the editorial review of Vikram Jain · decoded & published by BankPulse · 19 Jun 2026, 01:17 IST
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13360&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by Vikram Jain. Independent platform, not affiliated with the Reserve Bank of India; never reproduces RBI text verbatim.