Currency chests are depositories where bank notes and coins are stalked by RBI as well as banks on behalf of RBI. The currency management infrastructure in the country consists of network of 19 RBI issue offices, 4132 currency chests and 3813 small coin depots being managed by Commercial, Co-operative and Regional Rural Banks spread across the country.

 

Clean Note Policy: The usage of stapling is causing mutilation of notes and shortening the life of the currency. RBI prohibited the banks from stapling currency notes under section 35A BR Act with an objective to provide clean notes to public. As per policy, Banks should issue clean notes to the public and accept small denominations such as `1/, `2/- & `5/- and not issue number cut notes to public and any deviation attracts penalty. Educate the customers and members of the public to desist writing on the Bank Notes. Banks should ensure sorting of all notes and only Clean/issuable notes are put into circulation. Also, ensure that branches are not hoarding any Fresh Notes and coins and to be distributed to the customers.

 

Counterfeit Notes: In order to combat the menace, RBI has issued guidelines to all Banks/Financial Institutions on detection and impounding of counterfeit notes. It is necessary that currency notes received are carefully examined and impound counterfeit notes wherever detected to curb circulation of such notes to public. Counterfeit Notes detected shall be branded with a stamp (size of 5 cm x 5 cm) “Counterfeit Bank Note” with branch/office name, date and signature. Branch/Office is required to issue acknowledgement to the tenderer of counterfeit note duly signed by the tenderer and counter cashier with details such as serial number, denomination and number of pieces. For cases of detection of counter feit notes up to 4 pieces, in a single transaction, a consolidated report should be sent to the police authorities at the end of the month. However, FIR is required to be filed in case where the counterfeit notes found are 5 pieces or more in a single transaction and acknowledgement is to be obtained from the concerned police authorities. RBI reimburses to the extent of 25% of the notional value of the counterfeit notes of `100 denomination & above, detected and reported to RBI/Police. All Counterfeit notes received back from police authorities are to be preserved in the safe custody of the branch/office for a period of 3 years and there after sent to the concerned issue office of RBI with full details. In no case, the Counterfeit Notes should be returned to the tenderer or destroyed by the bank branches/treasuries.


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