RBI/2016-17/207
January 03, 2017
The Chairman / Managing
Director/ Chief Executive Officer,
(All banks with currency
chests)
Dear Sir / Madam
Allocation of cash for
rural areas
Please refer to our circulars DCM (Plg) No.1345/10.27.00/2016-17 dated
November 22, 2016 and DCM (Plg) No.1508/10.27.00/2016-17 dated December 02,
2016 on making cash available for rural areas.
2. On observing that bank
notes, being supplied to rural areas, at present, are not commensurate with the
requirements of rural population, some steps have already been initiated as
indicated in the above circulars. With a view to ensure that at least 40% bank
notes are supplied to rural areas and to mitigate the issue in a more enduring
manner, the banks maintaining currency chests are advised to take the following
steps, in continuation of the above.
Distribution Channels and
Proportion of currency flow
i. Banks should advise
their currency chests to step up issuance of fresh notes to rural branches of
RRBs, DCCBs and commercial banks, White Label ATMs in rural areas and post
offices in rural areas on priority basis which are considered main rural
channels of distribution.
ii. As the rural
requirements could vary from district to district depending on variations in
the rural and urban mix of each district in terms of relative shares in CASA
deposits and number of deposit accounts, to facilitate a need based approach in
this regard a certain percentage of allocation has been assigned to each
district as per Annex 1 depending on the rural and urban
mix.
iii. Accordingly, all
Chests operating in a district must issue bank notes to the above mentioned
distribution channels in the indicated proportion. The indicated proportion may
be maintained on weekly average basis at each chest level as it may be
difficult to stick to the proportion on daily basis.
Reporting for monitoring
iv. Currency chests must
furnish daily issuances to the above categories to their Link Offices (LO)
along with chest slips with a weekly summary as at close of business on every
Friday. LOs should in turn forward it to the RBI’s Regional Office concerned
(reporting format annexed) to facilitate a review. It may be similar to the
chest balances reporting mechanism (Annex 2). LOs may monitor the daily reports to
avoid lumpiness in issuances and to ensure that issuances are evenly.
Denominational mix
v. Chests should issue
bank notes in denominations of ₹ 500 and below. In particular ATMs, including WLAOs,
may be issued ₹ 500s and ₹ 100s and among ATMs category, Off-site ATMs should
be allocated higher proportion of cash as against on site ATMs as they are
more important in last mile currency connectivity.
vi. Existing stock of
other denominations notes below ₹ 100 should be issued liberally.
vii. Banks should indent
for coins, obtain supply from Issue Departments of Reserve Bank of India, if
required, and ensure supply to public on priority basis.
3. Please acknowledge
receipt.
Yours faithfully,
(P Vijaya Kumar)
Chief General Manager
Encl: As above
Annex 1 (enclosed)
Snaps
of RBI order is enclosed below
Post a Comment