RBI raises incentive for banks for distribution of coins

Mumbai, Aug 28: The Reserve Bank of India (RBI) has increased incentives for banks for the distribution of coins to the general public to Rs 65 per bag with effect from September 1.

Currently, the incentive is Rs 25 per bag.

In a circular, the RBI said that an additional incentive of Rs 10 per bag would be paid for coin distribution in rural and semi-urban areas on the submission of a auditor certificate to this effect. The distribution of coins shall also be verified by RBI Regional Offices during inspection of currency chest or incognito visit to branches among others.

Further, the RBI said that with a view to meet the coin requirements of bulk customers (requirement of more than 1 bag in a single transaction), banks are advised to provide coins to such customers purely for business transactions. The banks may also endeavour to provide such services as part of their Board approved policy on ‘Door Step Banking’ services.

Such customers should be KYC compliant constituents of the bank and the record of coins supplied should be maintained. Banks are advised to exercise due diligence to ensure that such facility is not misused.

“Disbursement of coins to retail customers through counters of bank branches shall continue as hitherto,” it said.