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Saturday, December 03, 2016

Currencies Chests and Their Allocations by RBI

By on Saturday, December 03, 2016
The RBI has 4211 currency chests to flow of currency all around the country. Moreover, there are 3990 depots of coinage around the country. The chests have been established around the country because the currencies which are deposited in the public banks are put secure here. The beginning of demonetization these chests are playing important role. The newly printed notes from the currency press are sent to these chests all around the country.
Reserve Bank of India takes the help of main governmental banks and state bank of India to establish the currency chests all around the country. Moreover 6 partner banks, all the nationalized banks, a few selected banks of private sector, 1 foreign bank, 1 co-operative bank and Gramin Bank—all are included in this work. Reserve Bank does this work through 18 branches or issue offices.
These 18 Issue Offices are delivered the currencies to all around the country from the 4 government currency presses. The railway, cargo aircraft of air force and the state police -- all provide the assistance for transporting the currencies up to these offices.
The RBI supplies currencies in the banking sectors through this network. The chief works are to set the currencies in the entire banks’ ATMs and to supply the currencies to different branches daily.
According to sources, the banks officers say that the RBI Currency Issue Office is not allocating the sufficient chests fund; so they are not able to disburse according to demand.
According to the account holders complaint, the bank staff are involved in carrying currencies out to convert the black money into new notes; by using the middlemen they may be close ones and relative in this business.This may be the complainants' confusion because the banks are not supplied with the sufficient fund in the chests.  
The shortage of new currencies in the chests which has affected the payment of withdrawing by the account holders under the guidelines issued by RBI has also pained to the salaried person of government. Some wrong bickering is going on among the person when they are looked in queue for withdrawal purpose;they are vexed with the apathy of banks.
The Reserve Bank on Friday nudged banks managing currency chests to engage district co-ordinators of state level bankers’ committee to ensure fair and even flow of money to farmers for their winter crop requirements in view of cash shortage post demonetisation. To ensure adequate allocation of banknotes is made for rural branches, post offices and DCCBs, banks are advised to involve the district co-ordinators (Lead District Managers) functioning under State Level Bankers’ Committee (SLBC) in facilitating/planning distribution of currency from currency chests, RBI said in a notification.
RBI also said there is a perception that banks with currency chests are giving priority to their own branches to supply cash and asked them to quell the misinformation.
“These banks with currency chests are, therefore, advised to make visible efforts to dispel the perception of unequal allocation among other banks and their own branches,” RBI said.
Earlier, on November 22, RBI in an advisory to banks had asked them to make cash available to farmers for rabi crop season. As per estimates, the planting season requires Rs 35,000 crore in the form of crop loan to farmers that is Rs 10,000 crore a week.
During the planting season, which concludes generally by the end of December, NABARD will utilise its own cash credit limit of Rs 23,000 crore to disburse crop loans. As these loans are given in cash, RBI has asked banks with currency chests to ensure adequate cash supply to district co-operative and regional rural banks.
Adequate cash supply should also be ensured for rural branches of all commercial banks, RBI stated. Bank branches in Agricultural Produce Market Committee (APMCs) are also to be supplied with enough cash to meet farmers’ demand.



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