The Reserve Bank of India ( RBI ), on Friday, issued a notification regarding levy of penal interest on the Banks for delayed reporting of transactions.
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 / non-reporting of transactions i.e. the currency chest had reported a net deposit. However, instances of delayed reporting where the currency chest had “net deposit” i.e. the currency chest did not enjoy RBI funds, are being dealt with differently by Issue offices due to the absence of clear instructions on the subject.
On a review, the Bank has decided that, penal interest at the prevailing rate for delayed reporting of the instances where the currency chest had reported “net deposit” may not be charged. However, in order to ensure proper discipline in reporting currency chest transactions, a flat penalty of Rs. 50,000 may be levied on the currency chests for delayed reporting as in the case of wrong reporting of soiled note remittances to RBI/diversions shown as “Withdrawal”.