The Reserve Bank of India (RBI) on April 01, 2026, issued the Master Direction on Incentives and penal provisions for bank branches and CCs in respect of currency operations.
The Reserve Bank of India (RBI), under the provisions of the RBI Act, 1934 and the Banking Regulation Act, 1949, has issued updated guidelines to strengthen the Clean Note Policy and improve currency management operations. The framework includes incentives for banks to develop Currency Chest infrastructure and enhance distribution/exchange of notes and coins, along with penal provisions to ensure timely reporting and better customer service.
To streamline existing instructions, RBI has issued a comprehensive Master Direction consolidating all current guidelines, directives, and illustrations in one place. This aims to provide clarity and ease of reference for banks.
With the issuance of this Master Direction, all earlier circulars and directions on the subject stand withdrawn, making this the single authoritative framework for currency management and related operations.
These directions shall become effective on April 01, 2026.
[RBI/DCM/2026-27/393 DCM (CC) No. G-3/03.06.001/2026-27]
