The Reserve Bank of India (RBI) on May 27, 2026, updated the Master Direction on Incentives for Currency Distribution and Exchange and Penalties / Penal Provisions for Bank Branches and Currency Chests for Deficiency in Rendering Customer Service and Reporting of Transactions / Balances.
The Reserve Bank of India (RBI) has issued updated guidelines under the RBI Act, 1934 and the Banking Regulation Act, 1949 to support the objectives of the Clean Note Policy and improve currency management. To encourage better infrastructure and services, RBI has introduced incentive schemes for banks to set up Currency Chests (CCs) and facilitate efficient distribution and exchange of currency, along with penalty provisions to ensure timely reporting and quality customer service.
A consolidated Master Direction has been issued, compiling all existing guidelines, instructions, and directives along with illustrations for easy reference. With the release of this Master Direction, all previous related circulars and directions stand withdrawn.
[Notification No. RBI/DCM/2026-27/393 DCM (CC) No. G-3/03.06.001/2026-27]
