Thursday, July 21, 2016

Currency Distribution & Exchange Scheme (CDES)



Introduction

The Currency Distribution & Exchange Scheme (CDES) for bank branches including currency chests has been formulated for exchange of notes and coins, in keeping with the objectives of Clean Note Policy.

Incentives

Sr No.
Nature Service
Particulars of Incentives
i
Opening and maintaining currency chests at centres having population of less than one lakh in underbanked States
a.     Capital  Cost:  Reimbursement  of 50% of capital expenditure subject to a ceiling of Rs.50 lakh per currency chest.  In the North Eastern region up to 100%, subject to the ceiling of Rs.50 lakh.
b.    Revenue cost: Reimbursement of 50% of revenue expenditure for the first 3 years. In the North Eastern region 50% will be reimbursed for the first 5 yrs.
ii
Exchange of soiled notes/adjudication of mutilated notes over the counter at bank branches.
a.     Exchange of soiled notes – Rs.2 per packet up to denomination Rs.50
b.    Adjudication  of  mutilated notes Rs.2 per piece
iii
Distribution of coins over counter 
i.      Rs.25/- per bag.
ii.    The incentives would be paid on the basis  of  withdrawal  from  currency chest, without waiting for claims from banks.
iii.  Banks are to ensure that coins are distributed to retail customers in small lots.
iv.  The distribution shall be verified by RBI through inspection / incognito visits.
iv
Installation  of  Machines  extending cash related retail services to public
i.      Cash Recyclers;
ii.    ATMs dispensing upto denominations of Rs.100/-
Note - ATMs distributing denomination of Rs.500/- and above are not eligible for reimbursement.
The maximum amount of reimbursement for the machines will be as follows:
For Metro / Urban areas
i.                Cash Recyclers : 50% of the actual cost or Rs.2 lac whichever is lower
ii.              ATMs dispensing uptoRs.100/- : 50% of the actual cost or Rs.2 lac whichever is lower
For Semi-urban / Rural areas
i.                Cash Recyclers : 60% of the actual cost  of  the  machine  or  Rs. 2,50,000 whichever is lower.
ii.              ATMs dispensing up to Rs.100/- : 60% of the actual cost of the machine or Rs.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 actually received in the Issue Office of the RBI. Banks need not submit a separate claim. Currency chest branch will pass on the incentive to the linked branches on a pro-rata basis.

ii)              Incentive will be paid in respect of the adjudicated notes received along with the soiled note remittances / sent separately by registered / insured post in a sealed cover to the RBI. No separate claim is required to be made.

Incentives for installation of machines
i)                The banks intending to purchase machines or establish currency chests during July 01st to June 30th of a year, may submit their Annual Plans, to RBI by April 15. RBI may then advise the maximum amount of permissible reimbursement.

ii)              The claim of incentives for installation of Cash Recyclers and ATMs dispensing lower denomination notes should be submitted on a quarterly basis within 30 days from the close of the respective quarter only after full payment is made to the vendors.
Based on RBI master direction dated 20th July 2016. For further clarifications refer www.rbi.org.in