Master Direction DCM (CC) No.G-3/03.41.01/2018-19
The Chairman and Managing
Chief Executive Officers,
Madam / Dear Sir,
Master Direction on Currency
Distribution & Exchange Scheme (CDES) based on performance in rendering
customer service to the members of public
In terms of the Preamble, under
Section 45 of the RBI Act, 1934 and 35 A of the Banking Regulation Act,
1949, the Bank issues guidelines / instructions for realising the
objectives of our Clean Note Policy. With a view to sustaining these
objectives, the Bank has formulated a scheme of incentives titled Currency
Distribution and Exchange Scheme (CDES) in order to ensure that all bank
branches provide better customer services to members of public.
2. The Master Direction enclosed
incorporates updated guidelines / circulars on the subject. The Direction
will be updated from time to time as and when fresh instructions are
3. This Master Direction has been placed on RBI
website at www.rbi.org.in.
(Manas Ranjan Mohanty)
Chief General Manager
Encl: As above
Circular on “Currency
Distribution & Exchange Scheme (CDES)” for bank branches including
currency chests based on performance in rendering customer service to
members of public
1. The Currency Distribution
& Exchange Scheme (CDES) for bank branches including currency chests
has been formulated in order to ensure that all bank branches provide
better customer service to members of public with regard to exchange of
notes and coins, in keeping with the objectives of Clean Note Policy.
As per the scheme, banks are
eligible for the following financial incentives for providing facilities
for exchange of notes and coins:
Opening of and maintaining
currency chests at centers having population of less than 1 lakh in under
Capital Cost: Reimbursement of 50% of
capital expenditure subject to a ceiling of ? 50 lakh per currency chest.
In the North Eastern region up to 100% of capital expenditure is eligible
for reimbursement subject to the ceiling of ? 50 lakh.
Revenue cost: Reimbursement of 50% of
revenue expenditure for the first 3 years. In the North Eastern region
50% of revenue expenditure will be reimbursed for the first 5 years.
Exchange of soiled notes/
adjudication of mutilated banknotes over the counter at bank branches
Exchange of soiled notes – ?
2 per packet for exchange of soiled notes up to denomination ? 50
Adjudication of mutilated notes – ?
2 per piece
Distribution of coins over
i. ? 25 per bag for
distribution of coins over the counter.
ii. The incentives would be paid
on the basis of withdrawal from currency chest, without waiting for
claims from banks.
iii. Banks may put in place a
system of checks and balances to ensure that coins are distributed to
retail customers in small lots and not to bulk customers.
iv. The distribution of coins
shall be verified by RBI Regional Offices through inspection of currency
chest / incognito visits to branches etc.
3. Operational Guidelines to
avail performance-based incentives –
i) The incentives will be paid
on the soiled notes actually received in the Issue Office of the RBI. Banks
need not submit a separate claim in this regard. Currency chest branch will
have to pass on the incentive to the linked branches for the soiled notes
tendered by them on a pro-rata basis.
ii) Similarly, incentive will be
paid in respect of the adjudicated notes received along with the soiled
note remittances / sent separately by registered / insured post in a sealed
cover to the RBI. No separate claim is required to be made.