Levy of Penal Interest – Delayed Reporting

Presently, penal interest is levied for all cases where the bank has enjoyed “ineligible” credit in its current account with the RBI on account of wrong, delayed or non-reporting of transactions.

However, instances of delayed reporting where the currency chest had “net deposit”, are being dealt with differently by Issue offices due to absence of clear instructions on the subject.

It has now been decided that, penal interest for delayed reporting where the currency chest had reported “net deposit” may not be charged.

However, a flat penalty of ₹ 50,000 may be levied for delayed reporting as in the case of wrong reporting of soiled note remittances to RBI or diversions shown as “Withdrawal”.

The revised instructions would come into effect from 9^th Feb 2018.

Based on RBI circular dated 9^th Feb 2018. For any further clarification please refer www.rbi.org.in