sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Latest Circulars »
 RBI-Auction of Government of India Dated Securities July 16, 2018
 Auction for Sale (Issue/Re-issue) of Government Stock (GS) July 16, 2018
 RBI-Incorporation of Name of the Purchaser on the Face of the Demand Draft
 RBI likely to extend deadline for filing of foreign investment master form
 Priority Sector Lending - Targets and Classification: Lending to non-corporate farmers – System wide average of last three years
 Exim Bank's Government of India supported Line of Credit of USD 17.50 million to the Government of the Cooperative Republic of Guyana
 Discussion on Changes in ITR Form & Stress Management with Financial Stress Assessment
 Auction for Sale (Re-issue) of Government Stock (GS) July 09, 2018
 Auction of Government of India Dated Securities July 09, 2018
 Central Board Of Indirect Taxes And Customs Notification No. 21/2018 – Central Tax
 Master Circular – Scheme of Penalties for bank branches based on performance in rendering customer service to the members of public
 Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks – Spreading of MTM losses and creation of Investment Fluctuation Reserve (IFR) by Co-operative banks
 Master Direction on Levy of Penal Interest for Delayed Reporting / Wrong Reporting / Non-Reporting of Currency Chest Transactions and Inclusion of Ineligible Amounts in Currency Chest Balances
 Master Direction on Currency Distribution & Exchange Scheme (CDES) based on performance in rendering customer service to the members of public
 

Master Circular Scheme of Penalties for bank branches based on performance in rendering customer service to the members of public
July, 09th 2018

RBI/2018-19/11
DCM (CC) No.G-4/03.44.01/2018–19

July 3, 2018

The Chairman & Managing Director 
Chief Executive Officers
All Banks

Madam / Dear Sir,

Master Circular – Scheme of Penalties for bank branches based on performance in rendering customer service to the members of public

Please refer to the Circular DCM (CC) No.G-3/03.44.01/2017-18 dated October 12, 2017 on the scheme of penalties.

2. A revised and updated version on the subject is annexed for information and necessary action.

3. This Master Circular is available on our website www.rbi.org.in.

Yours faithfully,

(Manas Ranjan Mohanty)
Chief General Manager

Encl: As above


Annex

Master Circular on the Scheme of Penalties for bank branches including currency chests based on performance in rendering customer service to members of public

1. The Scheme of Penalties for bank branches including currency chests has been formulated in order to ensure that all bank branches provide better customer service to members of public with regard to exchange of notes and coins, in keeping with the objectives of Clean Note Policy.

2. Penalties

Penalties to be imposed on banks for deficiencies in exchange of notes and coins / remittances sent to RBI / operations of currency chests etc. are as follows:

Sr.No. Nature of Irregularity Penalty
i. Shortages in soiled note remittances and currency chest balances For notes in denomination upto 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.

Shortages of 100 pieces and above per remittance shall be debited immediately. Penalty may be levied on reaching a limit of 100 pieces in a cumulative manner.
ii. Counterfeit notes detected in soiled note remittances and currency chest balances. Penalty on account of detection of counterfeit notes by RBI from soiled note remittance of banks and in currency chest balances shall be levied in terms of the instructions issued by DCM (FNVD) No.G-1/16.01.05/2018-19 dated July 02, 2018.
iii. Mutilated notes detected in soiled note remittances and currency chest balances 50 per piece irrespective of the denomination

Mutilated notes of 100 pieces and above per remittance shall be debited immediately. Penalty may be levied on reaching a limit of 100 pieces in a cumulative manner.
iv. Non-compliance with operational guidelines by currency chests detected by RBI officials

a) Non-functioning of CCTV

b) Branch cash/documents kept in strong room

c) Non-utilization of NSMs for sorting of notes (NSMs not used for sorting of high denomination notes received over the counter or not used for sorting notes remitted to chest/RBI)
Penalty of 5000 for each irregularity.

Penalty will be enhanced to 10,000 in case of repetition.

Penalty will be levied immediately.
v. Violation of any term of agreement with RBI (for opening and maintaining currency chests) or deficiency in service in providing exchange facilities, as detected by RBI officials e.g.

a) Non-issue of coins over the counter to any member of public despite having stock.

b) Refusal by any bank branch to exchange soiled notes / refusal by any currency chest branch to adjudicate mutilated notes tendered by any member of public

c) Non conduct of surprise verification of chest balances, at least at bimonthly intervals, by officials unconnected with the custody thereof and by the officials from the Controlling Office once in six months.

d) Denial of facilities/services to linked branches of other banks.

e) Non acceptance of lower denomination notes (i.e. denomination of 50 and below) tendered by members of public and linked bank branches.

f) Detection of mutilated /counterfeit notes in re-issuable packets prepared by the currency chest branches.
10,000 for any violation of agreement or deficiency of service.

5 lakh in case there are more than 5 instances of violation of agreement/deficiency in service by the branch. The levy of such penalty will be placed in public domain.

Penalty will be levied immediately.

3. Operational Guidelines on levy of penalties –

3.1 Competent Authority –

The Competent Authority to decide the nature of irregularity will be the Officer-in-Charge of the Issue Department of the Regional Office under whose jurisdiction the defaulting currency chest/bank branch is located.

3.2 Appellate Authority -

i. Appeal against the decision of the Competent Authority may be made by the Controlling Office of the currency chest/branch to the Regional Director of the Regional Office concerned, within one month from the date of debit, who may decide whether the same can be accepted/ rejected.

ii. Appeals for waiver of penalty made on grounds such as staff being new/untrained, lack of awareness of staff, corrective action having been taken/will be taken, etc. will not be considered.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions