Tuesday, May 31, 2016

Currency Distribution & Exchange Scheme (CDES)

“Currency Distribution & Exchange Scheme (CDES)” .
Performance based incentives will continue to be paid as hitherto w.e.f July 01, 2015; however, the incentives for installation of machines have been restricted to Cash Recyclers & ATMs dispensing lower denomination notes, subject to certain caps on reimbursement of cost per machine and will be effective from the date of the circular.

Sr. No.
Nature of Service
Particulars of Incentives
Opening and maintaining currency chests at centers having population of less than 1 lakh in under banked States
a.    Capital  Cost:  Reimbursement  of 50% of expenditure upto Rs. 50 lakh per currency chest.  In the North Eastern region upto 100% of the expenditure upto Rs.50 lakh.
b.  Revenue  cost:  Reimbursement     of 50% of expenditure for the first  3  years.  In  the  North  Eastern region, 50% of the expenditure for  the  first  5 years.
Exchange of soiled notes/ Adjudication of mutilated banknotes  over  the  counter 

a. Exchange of soiled notes – Rs. 2 per packet up to a denomination Rs. 50/-
b.    Adjudication of mutilated notes – Rs. 2/- per piece
Distribution of coins over counter
i.  Rs. 25 per  bag for distribution of coins over the counter.
ii.  The  incentives  would  be  paid  on  the basis   of   withdrawal   from   currency chest,  without  waiting  for  claims.
iii. Banks  are to  ensure  that coins are distributed to retail customers in small lots and not to bulk customers.
iv. The distribution of  coins shall  be verified   by   RBI through inspection of currency chest / incognito visits to branches etc.
Installation  of  Machines  which extend cash related retail services to the public like-
1.    Cash Recyclers
2.    ATMsdispensing lower denomination notes ( i.e.up to denomination of Rs. 100/-)

Note - ATMs distributing higher denomination of Rs.100/- and above are not eligible for this re-imbursement.

The maximum amount of reimbursement for the machines will be as follows –
For Metro / Urban areas
Cash  Recyclers    50%  of  the  actual cost  or  Rs.2,00,000 whichever is lower.
ATMs  dispensing  lower  denomination notes  (up  to  Rs. 100)  – 50% of the actual cost or Rs. 2,00,000 whichever is lower

For Semi-urban / Rural areas
Cash  Recyclers    60%  of  the  actual cost  or  Rs.2,50,000 whichever is lower
ATMs  dispensing  lower  denomination notes  (up  to  Rs.100)  – 60% of the actual cost  or ` 2,50,000 whichever is lower

Operational Guidelines to avail the incentives -

Performance based incentives -

i)                The incentives will be paid on the soiled notes received in the Issue Office of the RBI. Banks need not submit a separate claim. Currency chest branch will have to pass on the incentive to the linked branches.

ii)              Similarly, incentive will be paid in respect of the adjudicated notes received by RBI. No separate claim is required to be made.

Incentives for installation of machines

i) The banks intending to purchase machines and establish currency chests from 1st July to 30th June, may submit their Annual Plans containing the details of the machines and the cost, to RBI latest by 15th April every year. RBI, may then advise the maximum amount of reimbursement permissible to each bank for that year.

For the period July 01, 2016 to June 30, 2017, the proposals may please be submitted latest by May 31, 2016.

ii) The claims for incentives for installation of Cash Recyclers and ATMs dispensing lower denomination notes should be submitted to the Issue Office of RBI on quarterly basis within 30 days from the close of the respective quarter through the Link Office of the bank concerned after making the full payment to the vendors.
Based on RBI circular dated 5/5/16. For further details please visit www.rbi.org.in ……Poppy