DCM (Plg) No. 1430/10.27.00/2016-17
The Chairman / Managing
Director/ Chief Executive Officer,
Public Sector Banks/ Private Sector Banks / Foreign Banks/ Regional Rural
Banks / Urban Cooperative Banks/ State Cooperative Banks
Chest Guarantee Scheme for
Specified Bank Notes (SBNs) - CGSS
Please refer to our circular DCM (Plg) No.1383/10.27.00/2016-17 dated
November 24, 2016 on “Specified Bank Notes (SBNs) - Deposit
under Guarantee Scheme to decongest the storage facilities at banks”.
2. In continuation to the above,
it has now been decided to introduce a new scheme for depositing SBNs with
designated currency chest at the district level, under guarantee agreement
similar to the current facility available at RBI offices.
3. Instructions pertaining to
the scheme are at the Annex.
(P Vijaya Kumar)
Chief General Manager
Encl: As above
Guarantee Scheme for SBN Deposits (CGSS) at District Level - Guidelines
scheme will be operational at Districts Head Quarters where secured storage
facility will be made available for storing of SBNs. A currency chest
operating at the place to be called Designated Chest (DC) will be required
to operate a separate vault to be called Chest Guarantee Vault (CGV) as an
extended arm of it. Banks, preferably those not having any currency chest
will deposit SBNs into it on said to contain basis in sealed boxes and will
get the value of the notes to the credit of their current a/c with the
chest branch. The facility will also be available to Post Offices, if they
are maintaining current account with the chest branch managing CGV.
Branch will execute a guarantee bond with RBI as per the format in Annex I. Banks/ Post offices willing to avail the
facility from DC will have to execute a guarantee bond as per format in Annex II with them.
designated currency chest will be in charge of the CGV and a separate set
of joint custodians will be in charge of it.
each district, one officer from RBI, will be the Nodal officer (NO) who
will supervise the overall operations.
Regional Offices of RBI will identify DC for each district.
banks have to authorise an official / officials for making such deposits,
through a mandate whose signatures are available on record with DC.
signature of official so authorised should be verified / confirmed by the
DC from the officials of the same bank / post office whose signature/s is /
are registered with DC. On such authorised officials will be permitted to
deposits SBNs into CGV.
3. Periodicity of CGSS
being operational, banks will approach DC with details of SBN to be
deposited. Thereafter, DC should schedule receipt of SBNs in consultation with
the tendering banks / Post offices.
entire scheme for accepting SBNs, under this scheme, will be operation for
7 working days from the date it commences in a district.
4. Receipt of SBNs under CGSS
should be tendered in bundles of 10 packets each of 100 pieces with details
of total number of SBNs in each box in triplicate as per Annex III. Separate boxes should be used SBNs in
the denominations of Rs 500 and Rs 1000.
boxes should be delivered by the banks with double lock and proper seal
along with duly filled form.
boxes with SBNs will be received from the tendering banks / post office on
said to contain basis after prima facie checking. Thereafter, the boxes
should be locked and sealed by the tendering bank in the presence of joint
custodians bank concerned. The keys will be kept with the tendering
bank/post office. There will be no Preliminary Verification and / or
checking of bundles and packets.
receipt of locked and sealed boxes and subject to the satisfaction of the
joint custodians the tender should be accepted and acknowledgement on the
copy of Annex III will be given. The other two copies of Annex III will be
in the respective custody of the DC and RBI Nodal Officer.
containing should be kept in the strong room in a segregated manner, tender
wise and bank wise.
completion of each day’s work, the CGV will be put under lock and seal by
the joint custodians as well as the RBI Nodal officers. On completion of
the 7th day of the accepting SBNs deposits the CGV should be locked and
sealed by all the three officials and thereafter, RBI Nodal Officer will
return to his/her headquarters.
receipt of SBN, current account of the tendering banks / Post office should
be credited by the DC and these balances will be shown as chest balances
under soiled note category.
entry in the chest book should be made every day with date and time stamp
for the consolidated amount of the day’ s receipts.
reporting should be done by the DC, through ICCOMS – CCRS. Similar
reporting should also be done while sending SBNs to RBI.
the seven days, when SBN deposits will be accepted, the DC should send a
daily report in the enclosed format Annex IV by mail.
consolidated report in Annex V should
also be sent by mail at the end
of the 7th day.
to be made for round the clock guarding of CGV by the police.
CGV has CCTV coverage the same should be activated.
9. Evacuation and Processing
RBI will arrange to evacuate SBNs from CGV on priority basis.
SBNs will be subjected to detailed examination in Curenncy verification and
Processing Systems (CVPS).
of deficiencies viz. shortage, counterfeit notes, mutilated note, etc.
during processing at RBI will be recovered from DC who in turn will recover
the same from the tendering bank / post office.
should be subjected to inspection by controlling authority and Nodal
officer of RBI, every fortnight.
Police will also be requested to subject CGV premises to periodical checking.
necessary, expenses relating to round the clock guarding will be borne by
relating to remittance of SBNs to RBI, will be borne by RBI.