RBI Update - Master Direction – Scheme of Penalties for bank branches and currency chests for deficiency in rendering customer service to the members of public

RBI issued the Master Direction – Scheme of Penalties for bank branches and currency chests for deficiency in rendering customer service to the members of public

The following has been stated

In terms of the Preamble to and Section 45 of the Reserve Bank of India Act, 1934 (RBI Act) and Section 35A of the Banking Regulation Act, 1949, Reserve Bank of India issues guidelines / instructions for realising the objectives of Clean Note Policy and enhancing the operational efficiency of currency management. In order to ensure that all bank branches provide proper customer service, the Bank has formulated a Scheme of Penalties for bank branches including currency chests, for deficiency in rendering customer service to the members of public.

The Scheme of Penalties for bank branches and currency chests has been formulated to ensure that all bank branches / currency chests provide customer service to the members of public / linked bank branches keeping in view the objectives of Clean Note Policy and enhancing operational efficiency.

Sr. No. Nature of Irregularity Penalty i. Shortages of notes in Soiled Note Remittances (SNRs) and shortages of notes and coins in currency chest balances For notes in denomination up to ₹50/- ₹50/- per piece in addition to the loss. For notes in denomination of ₹100/- & above Equal to the value of the denomination per piece in addition to the loss. For coins in all denominations Equal to the value of the denomination per piece in addition to the loss. The recovery of loss and levy of penalty shall be done immediately on detection of shortage, irrespective of number of pieces. ii. Counterfeit notes detected in soiled note remittances and currency chest balances Banknotes tendered over the counter shall be examined for authenticity through machines. Similarly, banknotes received directly at the back office / currency chest through bulk tenders shall also be examined through machines. Failure of the banks to impound counterfeit notes detected at their end will be construed as wilful involvement of the bank concerned in circulating counterfeit notes and penalty will be levied. Penalty shall be levied in terms of the instructions issued by DCM (FNVD) No.G-4/16.01.05/2025-26 dated April 1, 2025 iii. Mutilated notes (including deliberately cut notes and built-up notes) detected in soiled note remittances and currency chest balances ₹50/- per piece irrespective of the denomination in addition to the loss.