Page 53 - Banking Finance April 2019

RBI CIRCULAR

India, Central Office, Shahid Bhagat Singh Marg, of storage facilities in Currency Chests (CCs), shall be
Fort, Mumbai – 400 001 both in hard copy and soft implemented forthwith:
copy (excel format) by email. a. The CCs having large vault space shall consider
ii) In respect of 2% interest subvention, banks are segregation of storage of coins inside the vault duly
required to submit their claims on a half-yearly segregated by mesh structure / barricades without
basis as on September 30 and March 31 for the obstructing clear view and CCTV coverage.
years 2019 and 2020, of which, the latter needs b. Such of the CCs which do not have sufficient storage
to be accompanied by a Statutory Auditor's space inside the vault to segregate storage of coins
certificate certifying the claims for subvention for
may continue to store the coins under CCTV
the financial year ended March 31 of the coverage, in a manner operationally convenient to
corresponding period. Any remaining claim them keeping in view the spirit of the circular, so
pertaining to the disbursements made during the that notes and coin spaces are clearly identifiable.
years 2018-19 and 2019-20 and not included in the
claim for March 31, 2019 and March 31, 2020 c. Banks shall devise suitable processes to clearly colour
respectively, may be consolidated separately and code their bins for identification of denomination
details and clear segregation of fresh, re-issuable
marked as an 'Additional Claim' duly certified by
Statutory Auditors. and soiled notes, which shall be uniformly applied
across their Currency Chests. The bins containing
iii) In respect of the 3% additional subvention, banks notes that are yet to be processed on NSMs shall
may submit their one-time consolidated claims also be colour coded separately.
pertaining to the disbursements made during the
year during 2018-19 and 2019-20 latest by April 30, 2. Confirmation of implementation across all Currency
2020 and April 30, 2021 respectively, certifying the Chests of your bank should be sent to Issue Department
correctness of the claim by Statutory Auditors. of the Regional Office under whose jurisdiction your Head
Office is situated by September 30, 2019.
iv) In respect of 2% IS claims towards post–harvest
credit against negotiable warehouse receipts, 2% Yours faithfully,
claim on restructured loans on account of natural (Aviral Jain)
calamity and 2 % or 3% claim on account of severe General Manager
natural calamity, banks may submit their one-time
consolidated claims separately for each head
pertaining to the disbursements made during the Establishment of Branch Office (BO) /
year, certifying the correctness of the claim by Liaison Office (LO) / Project Office (PO)
Statutory Auditors.
or any other place of business in India by

Yours faithfully, foreign entities
(G.P. Borah) RBI/2018-19/132
Chief General Manager-in-Charge February 27, 2019

Storage of Notes and Coins 1. Attention of the Authorised Dealer (AD - Category I)
RBI/2018-19/133 banks is invited to the Foreign Exchange Management
February 28, 2019 (Establishment in India of a Branch Office or a Liaison
Office or a Project Office or any Other Place of Business)
1. As stated in para 15 of the monetary policy statement Regulations, 2016, notified by the Reserve Bank vide
of October 04, 2016, the Bank had constituted a Notification No FEMA 22(R)/RB-2016 dated March 31,
Committee on Currency Movement (CCM) [Chair: Shri 2016, as amended from time to time.
D.K. Mohanty, Executive Director] to review the entire 2. In terms of extant Regulations, applications received
gamut of security of treasure in transit. The from a Non-Government Organisation, Non-Profit
recommendations of the Committee have been Organization, Body/Agency/Department of a foreign
examined and the following, relating to standardisation Government for opening of a branch office or a liaison

BANKING FINANCE | APRIL | 2019 | 53