DCM (CC) No. 2885/03.35.01/2017-18
February 9, 2018
The Chairman & Managing Director / Chief Executive Officer
(All Banks having currency chests)
The Director Treasuries
/ Dear Sir,
of Penal Interest – Delayed Reporting
refer to our Master Direction DCM (CC) No.G-2/03.35.01/2017-18 dated
October 12, 2017 on captioned subject.
Presently, penal interest is levied for all cases where the bank has
enjoyed “ineligible” credit in its current account with the RBI on account
of wrong / delayed / non-reporting of transactions i.e. the currency chest had
reported a net deposit. However, instances of delayed reporting where
the currency chest had “net deposit” i.e. the currency chest did not enjoy
RBI funds, are being dealt with differently by Issue offices due to absence
of clear instructions on the subject.
On a review, it has been decided that, 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 currency chest transactions, a flat penalty
of ? 50,000 may be levied on the currency chests for delayed reporting as
in the case of wrong reporting of soiled note remittances to RBI /
diversions shown as “Withdrawal” (para 1.5 of the Master Direction).
Other instructions contained in the above Master Direction remain
The revised instructions would come into effect for all the instances detected
on or after the date of issue of the circular.
Chief General Manager