What Is Currency Chest?
Two cases were recently registered after RBI detected fake notes from the SBI currency chest in Kochi, Kerala.
- Currency Chest is a place where the Reserve Bank of India (RBI) stocks the money meant for banks and ATMs.
- The RBI has authorised select scheduled banks to establish currency chests.
- The monitoring authority over the chests lies with the RBI.
- They are inspected by representatives of RBI from time to time.
- Whenever new currency notes are printed by RBI, they are first delivered to currency chests.
- These notes are then delivered to other banks by the banks holding the currency chests.
- They act as cash distribution centres.
- These currency chests are expected to distribute banknotes and rupee coins to other bank branches in their area of operation.
- RBI takes back soiled notes and mutilated notes from the public through currency chests.
- If the bank has an excess cash balance, the excess is moved to the currency chest.
- In a vice versa situation, when the bank is low on cash balance, the currency chest provides it.