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Currency chest

Post by Admin Apr 10,2019

Small Finance Banks

Post by Admin Apr 09,2019

Ways and Means Advances (WMA)

Post by Admin Apr 03,2019

Advance Pricing Agreements (APAs)

Post by Admin Apr 04,2019

Self-Regulatory Organisation (SRO) for Investment Advisers

Post by Admin Apr 02,2019

Generalised System of Preferences (GSP)

Post by Admin Apr 01,2019

Virtual SIM Card

Post by Admin Mar 21,2019

Are Gilt funds not a great investment?.

Post by Admin Mar 22,2019

Disinvestment exceeds target

Post by Admin Mar 22,2019

RBI again defers Ind AS implementation by banks

Post by Admin Mar 21,2019

Currency chest

Post by Admin,Apr 10,2019.
News

The Reserve Bank of India (RBI) has issued guidelines for banks to set up new currency chests.

Guidelines

  • Area of the strong room/ vault of at least 1,500 sq ft. For those situated in hilly/ inaccessible places, the strong room/ vault area of at least 600 sq ft.
  • The new chests should have a processing capacity of 6.6 lakh pieces of banknotes per day. Those situated in the hilly/ inaccessible places, a capacity of 2.1 lakh pieces of banknotes per day.
  • The currency chests should have Chest Balance Limit (CBL) of Rs 1,000 crore, subject to ground realities and reasonable restrictions, at the discretion of the Reserve Bank.

Currency chests

  • Currency chests are branches of selected banks authorised by the RBI to stock rupee notes and coins.

Authority

  • The responsibility for managing the currency in circulation is vested in the RBI.
  • The central bank advises the Centre on the number of notes to be printed, the currency denominations, security features and so on. The number of notes that need to be printed is determined using a statistical model that takes the pace of economic growth, rate of inflation and the replacement rate of soiled notes.
  • The Government has, however, reserved the right to determine the amount of coins that have to be minted.

Role of currency chests

  • The RBI offices in various cities receive the notes from note presses and coins from the mints. These are sent to the currency chests and small coin depots from where they are distributed to bank branches.
  • The RBI has set up over 4,075 currency chests all over the country. Besides these, there are around 3,746 bank branches that act as small coin depots to stock small coins.