Page 51 - Banking Finance March 2019

RBI CIRCULAR

RBI CIRCULAR

Storage of Notes and Coins of the Regional Office under whose jurisdiction your
Head Office is situated by September 30, 2019.
RBI/2018-19/133
February 28, 2019 Yours faithfully,
(Aviral Jain)
1. As stated in para 15 of the monetary policy statement General Manager
of October 04, 2016, the Bank had constituted a
Committee on Currency Movement (CCM) [Chair: Shri
D.K. Mohanty, Executive Director] to review the entire Establishment of Branch Office (BO) /
gamut of security of treasure in transit. The Liaison Office (LO) / Project Office (PO)
recommendations of the Committee have been
examined and the following, relating to standardisation or any other place of business in India by
of storage facilities in Currency Chests (CCs), shall be foreign entities
implemented forthwith:
RBI/2018-19/132
i) The CCs having large vault space shall consider
February 27, 2019
segregation of storage of coins inside the vault duly
segregated by mesh structure / barricades without
obstructing clear view and CCTV coverage. 1. Attention of the Authorised Dealer (AD - Category I)
banks is invited to the Foreign Exchange Management
ii) Such of the CCs which do not have sufficient storage (Establishment in India of a Branch Office or a Liaison
space inside the vault to segregate storage of coins Office or a Project Office or any Other Place of Business)
may continue to store the coins under CCTV
Regulations, 2016, notified by the Reserve Bank vide
coverage, in a manner operationally convenient to
Notification No FEMA 22(R)/RB-2016 dated March 31,
them keeping in view the spirit of the circular, so
2016, as amended from time to time.
that notes and coin spaces are clearly identifiable.
2. In terms of extant Regulations, applications received
iii) Banks shall devise suitable processes to clearly from a Non-Government Organisation, Non-Profit
colour code their bins for identification of Organization, Body/Agency/Department of a foreign
denomination details and clear segregation of Government for opening of a branch office or a liaison
fresh, re-issuable and soiled notes, which shall be
office or a project office or any other place of business
uniformly applied across their Currency Chests. The
in India are to be forwarded to the Reserve Bank for
bins containing notes that are yet to be processed
prior approval and be considered in consultation with
on NSMs shall also be colour coded separately.
the Government of India. This has since been reviewed
2. Confirmation of implementation across all Currency and as notified through Notification No FEMA 22(R)(1),
Chests of your bank should be sent to Issue Department it is advised that if such an entity is engaged, partly or

BANKING FINANCE | MARCH | 2019 | 51