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RBI allows lenders to include banned notes in their cash balance

SBNs deposited in the currency chests, since November 10, 2016 will be considered as part of the chest balance in the soiled note category but such deposits will not be reckoned for calculating Chest Balance Limit or Cash Holding

Arnima Dwivedi

Arnima DwivediBy Arnima Dwivedi

Published on 30 Nov 2016 11:41 AM GMT

RBI allows lenders to include banned notes in their cash balance
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New Delhi: The Reserve Bank of India ( RBI ) on Wednesday allowed the lender banks to include the currency notes scrapped by the Centre as part of their cash balance. The Central bank, however, made it clear that the Specified Bank Notes (SBN) will be considered as soiled notes and would not be used for calculating Chest Balance Limit or Cash Holding Limit.

According to the analysts, the move would help banks adhere to the RBI's sharp hike in the Cash Reserve Ratio (CRR) that was announced on Saturday last.

Also Read: RBI limits withdrawal from Jan Dhan accounts to Rs 10,000

The statement released by the Central bank stated two major points:

  • SBNs deposited in the currency chests, since November 10, 2016 will be considered as part of the chest balance in the soiled note category but such deposits will not be reckoned for calculating Chest Balance Limit or Cash Holding Limit.
  • A review of the above will be taken up in the second fortnight of February 2017.

You may also read: The new IT Bill is nothing but Paytm (Pay to Modi) Bill: Rahul Gandhi

Arnima Dwivedi

Arnima Dwivedi

A journalist, presently working as a sub-editor with newstrack.com. I love exploring new genres of humans and humanity.

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