RBI/2016-17/207
DCM (Plg) No.2200/10.27.00/2016-17
January 03, 2017
The Chairman / Managing Director/ Chief Executive Officer,
(All banks with currency chests)
Dear Sir / Madam
Allocation
of cash for rural areas
Please refer to our circulars
DCM (Plg) No.1345/10.27.00/2016-17 dated November 22, 2016 and DCM (Plg) No.1508/10.27.00/2016-17
dated December 02, 2016 on
making cash available for rural areas.
2. On observing that bank notes, being supplied to rural areas, at
present, are not commensurate with the requirements of rural population,
some steps have already been initiated as indicated in the above circulars.
With a view to ensure that at least 40% bank notes are supplied to rural
areas and to mitigate the issue in a more enduring manner, the banks
maintaining currency chests are advised to take the following steps, in
continuation of the above.
Distribution
Channels and Proportion of currency flow
i. Banks should advise their currency chests to step up issuance of
fresh notes to rural branches of RRBs, DCCBs and commercial banks, White
Label ATMs in rural areas and post offices in rural areas on priority basis
which are considered main rural channels of distribution.
ii. As the rural requirements could vary from district to district
depending on variations in the rural and urban mix of each district in
terms of relative shares in CASA deposits and number of deposit accounts,
to facilitate a need based approach in this regard a certain percentage of
allocation has been assigned to each district as per Annex 1 depending on the rural and urban
mix.
iii. Accordingly, all Chests operating in a district must issue bank
notes to the above mentioned distribution channels in the indicated
proportion. The indicated proportion may be maintained on weekly average
basis at each chest level as it may be difficult to stick to the proportion
on daily basis.
Reporting
for monitoring
iv. Currency chests must furnish daily issuances to the above categories
to their Link Offices (LO) along with chest slips with a weekly summary as
at close of business on every Friday. LOs should in turn forward it to the
RBI’s Regional Office concerned (reporting format annexed) to facilitate a
review. It may be similar to the chest balances reporting mechanism (Annex
2). LOs may monitor the daily reports to avoid lumpiness in issuances and
to ensure that issuances are evenly.
Denominational
mix
v. Chests should issue bank notes in denominations of ? 500 and below.
In particular ATMs, including WLAOs, may be issued ? 500s and ? 100s and
among ATMs category, Off-site ATMs should be allocated higher proportion of
cash as against on site ATMs as they are more important in last mile
currency connectivity.
vi. Existing stock of other denominations notes below ? 100 should be
issued liberally.
vii. Banks should indent for coins, obtain supply from Issue Departments
of Reserve Bank of India, if required, and ensure supply to public on
priority basis.
3. Please acknowledge receipt.
Yours faithfully,
(P Vijaya Kumar)
Chief General Manager
Encl: As above
Annex 1 (enclosed)
Annex 2
Daily reporting by Link Offices to
ROs of RBI
(? in crore)
|
Bank
|
Date
|
Cash
disbursed for Rural ATMs
|
Cash
disbursed to Rural branches of
|
Cash
disbursed to rural WLAs
|
Cash
disbursed to post offices in rural areas
|
Total cash
disbursed To rural areas
|
RRBs
|
Commercial
Banks
|
DCCBs
|
|
|
|
|
|
|
|
|
|
|