The Reserve Bank of India on 1st April 2021 has issued Master Direction on Levy of Penal Interest for Delayed Reporting / Wrong Reporting / Non-Reporting of Currency Chest Transactions and Inclusion of Ineligible Amounts in Currency Chest Balances.
Key Highlights from the direction:
- The minimum amount of deposit into / withdrawal from currency chest will be ₹ 1,00,000 and thereafter, in multiples of ₹ 50,000.
- The currency chests should invariably report all transactions through CyM – CC portal on the same day by 7 pm.
- Relaxation in the reporting period on account of strike situation will be considered on a case-to-case basis.
- Penal interest will be levied in respect of cases of wrong reporting in the same manner till the date of receipt of corrected advice by the Reserve Bank
- Penal interest shall be levied at the rate of 2% over the prevailing Bank Rate for the period of delayed reporting/wrong reporting/non-reporting /inclusion of ineligible amounts in chest balances.
- As the sole criterion for levy of penal interest for delayed reporting is the number of days of delay, there should ordinarily be no occasion for banks to request for reconsideration of the Reserve Bank’s decision in individual cases.
- 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 irrespective of the value of net deposit.
