RBI allows banks to park old currency at District Chests

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Mumbai, November 28
Reserve Bnak of India (RBI) to decongest storage facility of old Rs. 500 and Rs. 1,000 notes has allowed lenders to park such currencies at currency chests at the district level in view of mounting deposits due to the demonetisation drive.
RBI, said a currency chest operating at the point to be called Designated Chest (DC) will be required to operate a separate vault – to be named Chest Guarantee Vault (CGV) – as an extended armof it.
Banks, preferably those not having any currency chest, will deposit such notes in sealed boxes and will get the value of the notes to the credit of their current a/c with the chest branch,
RBInotification said.
The facility will also be available at post offices if they are maintaining current account with the chest branch managing CGV, it said.
RBI also said expenses relating to round the clock guarding will be borne by Apex bank, if necessary.
Besides, expenses relating to remittance of old currency notes to RBI will also be borne by the Apex bank.
The notification further said the regional office of RBI will arrange evacuation of notes from the district chest on priority basis.
Thereafter, notes will be subjected to detailed examination and the detection of deficiencies namely shortage, counterfeit notes,mutilated notes, etc during processing at RBI will be recovered from the chest which in turn will recover the same from the tendering bank or
post office.

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