RBI increases incentives for banks for distribution of coins from Rs. 25 to Rs 65 per bag

CIRCULAR NO. DCM (CC) NO.97527/03.41.01/2021-22, Dated 28.08.2021

In order to ensure that all bank branches provide better customer services to members of the public with regard to the exchange of notes and distribution of coins. As a result, the RBI has decided to increase the incentives being paid to the banks for the distribution of coins from Rs. 25 per bag to 65 per bag and the amount will be paid on the basis of net withdrawal from the currency chest without waiting for claims from banks.

However, within one week of receiving incentives from RBI, the Currency Chest branch must pass on the incentive to the connected bank/branches for coins supplied by them on a pro-rata basis.

In addition to the aforementioned, on the production of a CA/Auditor certificate, an extra incentive of Rs. 10/- per bag will be provided for currency distribution in rural and semi-urban regions.

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