Synopsis: The Reserve Bank of India (RBI) has released guidelines for banks to establish new currency chests, outlining minimum area requirements for strong rooms and processing capacities for banknotes. These guidelines aim to enhance the efficiency and security of currency management operations nationwide.
On Monday, the Reserve Bank of India (RBI) released guidelines for banks regarding the establishment of new currency chests, stipulating a minimum area of 1,500 square feet for the strong room. For locations in hilly or inaccessible areas, the minimum strong room area is set at 600 square feet. Additionally, the new currency chests should have a processing capacity of 6.6 lakh banknotes per day, with a reduced capacity of 2.1 lakh banknotes per day for chests in hilly or inaccessible areas.
Previously, an RBI-appointed committee had recommended that banks be encouraged to establish large currency chests equipped with modern facilities and a Chest Balance Limit (CBL) of at least Rs 1,000 crore. The RBI reiterated that currency chests should maintain a CBL of Rs 1,000 crore, adjusted as necessary based on practical considerations and reasonable restrictions, at the discretion of the central bank.
According to the RBI's annual report for 2017-18, the currency management infrastructure comprises 19 issue offices of the Reserve Bank, along with 3,975 currency chests and 3,654 small coin depots operated by commercial, cooperative, and regional rural banks across the country.
In conclusion, the Reserve Bank of India has issued comprehensive guidelines for banks regarding the establishment of new currency chests, emphasizing minimum area requirements for strong rooms and processing capacities for banknotes.
The guidelines aim to enhance the efficiency and security of currency management operations across the country.
Additionally, the RBI reaffirms its commitment to promoting modernization in currency chest facilities while ensuring practical considerations and reasonable restrictions are in place.
These measures underscore the central bank's ongoing efforts to maintain robust currency management infrastructure to meet the evolving needs of the banking system and the economy as a whole.
