Bank Currency Chest
Updated on Dec. 7, 2022, 5:59 a.m.
Most of the banks in India are maintaining the Currency Chests, it is the depository area designated by the Reserve Bank of India for storing various currencies and notes for the banks and ATM’s. This is one of the major areas consisting of approximately 1500 square feet and in inaccessible places and this is made as per the guidelines given by the RBI.
These places are authorised by RBI to store the notes and coins. The cash deposited is for circulating to other branches of Bandhan Bank and its associated ATM located in India. The current branch of Bandhan Bank at Deedargunj located near Patna will have the currency chest.
The Currency chest does the major task of distributing new currency and notes, recycle old notes and keep the cash reserves of the banks in a secured location in a logical manner.
Minimum Standards for Currency Chest
There are certain standards available for Currency Chest located in India and they are given below as follows:
- The do have the Processing capacity of 6,60,000 pieces of banknotes per day.
- The CBL or the Chest Balance Limit will be till INR 10 billion and can be changed by the apex banking authority and this is done by the Reserve Banks.
- Area of the strong room/ vault is 1500 sq. ft. The currency chest located at the hilly / desert and the inaccessible places (as defined by central / state government), the strong room/ vault area of at least 600 square feet and must comply.
- All the currency chest and vaults will have CCTV.
Features of the Currency Chest
There are various features of the Currency Chest and they are given below as follows:
- Giving the Access to other bank branches can be given.
- You will have the Remote and the Centralised Patterns.
- The bins inside the currency chest will move and get allotted to a currency and you may or may not have to mark the bins.
- It can create a Daily Mandatory Reports as required by the Regulating agency.
- Usage of the Data Exports to meet the regular requirements.
- The deposits and withdrawals of the Cash is done on the principles of the FIFO (First in and First Out Basis).
- The bank can undertake the process of the diversion and the exchange of the currency in a logical manner.
There are various transactions undertaken by the Currency Chest of various banks done by the RBI on regular basis and this assumes greater importance as per the policy guidelines in the current scenarios.
Why the Need for Currency Chest in Present Scenarios?
There is a great requirement for the Currency Chest in the Present Scenarios to check for the new and the old currency notes and some of the reasons to have the Currency Chests are given below as follows:
- Avoiding Calculation Errors: An effective Currency Chest Department Head and its officers will carry various calculations using the Excel and this mechanism present play a major role in checking components like Cash in Hand and Cash Disbursed and others.
- Loss of Data: Most of the branches of various banks in India are sending out inbound and outbound transfer requests using the phone and email facilities. Furthermore, there is no process present to store all the details at one place or in a centralised location. Hence the usage of the Currency chest will protect the vital data and also prevent the loss of valuable information. The data will get archived at a centralised source and the executives of Bandhan Bank can retrieve them with a snap of a finger.
- Detecting and Mitigating the Frauds: To be honest, after the onslaught of the Pandemic like COVID 19 and Ukraine—Russia War the cases of corruption and online frauds has multiplied many times. At this juncture, the usage of the Currency Chest can play a major role in getting rid of the fraudulent cases in banks and other financial institutions.
Benefits of the Currency Chest at Bandhan Bank
There are various benefits of the Currency Chest at the Bank and some of them are given below as follows:
- The uniqueness and accuracy of the data is maintained.
- Due to this system the surprise inspection and verification is made easier.
- Authenticity of the customers and bank details are maintained in a logical manner.
- There is a great control of the frauds and cash related disputes and the concept of First Cum First Serve is introduced.
- You can also put a tremendous block on the control of the Cash Retention Limits.
- We can offer quality customer service to numerous customers of the bank in a systematic and satisfactory manner using the Currency chest.
- It helps in overcoming the currency requirements of the people and banks in particular.
- You can exchange the soiled and destroyed notes and also withdraw unfit notes.
- You can exchange the money from one denomination to another with ultimate comfort.
- This also play a major role in fulfilling the payment requirements and cash flow of the government of India.
Hence all the banks in India must have a strong currency chest in order to protect their financial resources from getting wiped out in the current scenario.
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