RBI seeks info on banks’ scrapped note holdings as deposit facility ends

Reserve Bank of India (RBI) has asked all banks to report information on collection of scrapped Rs500 and Rs1,000 currency notes, referred to as specified bank notes (SBNs) on the close of business today (30 December) - the day of closure of deposit facility for these notes.

The central bank said banks should make arrangements to gather the information from all their branches accordingly.

''With the closure of the facility of exchange of SBNs as at the close of business on December 30, 2016, all banks should report information on collection of SBNs on December 30, 2016 itself at email. Banks should make arrangements to gather the information from all its branches accordingly,'' the central bank stated in a release.

RBI has directed all bank branches, other than those of district central co-operative banks (DCCBs) that have accumulated SBNs as at the close of business on 30 December 2016 to deposit these in any Issue Office of the Reserve Bank or a currency chest on 31 December 2016 itself.

SBNs cannot form part of banks' cash balances from the close of business as on 31 December 2016.

However, DCCBs may retain the SBNs received between 10 and 14 November 2016 till receipt of further instructions, RBI said.

For banks maintaining currency chests, RBI said they should make necessary arrangements to facilitate the deposit of SBNs received through linked branches /other branches of banks / post offices.

Reporting of the transactions in ICCOMS will be enabled beyond 9.00 PM till all the deposits are received and accounted for, RBI said.

To facilitate storage of SBNs, banks maintaining currency chests may utilise additional space in their existing currency chest or additional storage space at the same centre with the proviso that it is as safe and secure as a currency chest, RBI added.