With effect from September 1, the Reserve Bank of India upped banks' incentives for coin distribution to the general public to Rs 65 per bag.
RBI: With effect from September 1, the Reserve Bank of India (RBI) increased the incentive for banks to distribute coins to the general public to Rs 65 per bag.
The current reward per bag is Rs. 25.
The RBI said in a circular that on the production of an auditor's certificate, an extra incentive of Rs 10 per bag will be provided for currency distribution in rural and semi-urban regions. The distribution of coins will also be confirmed by RBI Regional Offices during currency chest inspections or incognito branch visits, among other things.
Furthermore, the RBI encouraged banks to give coins to bulk clients (those who want more than one bag in a single transaction) just for commercial transactions to satisfy their coin needs. As part of their Board-approved policy on 'Door Step Banking' services, banks may also try to provide such services.
Such clients should be bank constituents who have completed the KYC process, and a record of coins given should be kept. Banks should conduct due diligence to verify that the facility is not being abused.
"Disbursement of coins to retail customers through counters of bank branches shall continue as hitherto," it said.