Simplified procedure for opening of Currency Chests

April 23, 2015

The Chairman & Managing Director /
Chief Executive Officer / Managing Director
All Scheduled Commercial Banks

Madam/ Dear Sir,

Simplified procedure for opening of Currency Chests

Please refer to our circular DCM(CC)No.2991/03.39.01/2011-12 dated January 02, 2012 on Construction of Currency Chests Strong Rooms / Vaults. The extant instructions for setting up of new currency chests were reviewed and it has been decided to do away with multiple layers of approvals. These simplified guidelines as under may be followed meticulously.

A. Locations that are at/ close to the International Border/ Insurgency affected areas

1. In case the place of the proposed location of a currency chest is within 80 kms from the international border and it is not a State Capital or a cantonment area, banks may approach Regional Offices (ROs) of the RBI for obtaining security clearance. Under no circumstance, construction can be commenced before receipt of the required clearance.
2. The banks may also note to obtain all necessary approvals from other agencies before beginning construction.
3. Strict adherence to the Technical Specifications of construction in terms of the circular DCM(CC)G-18/03.39.001/2008-09 dated November 14, 2008, must be ensured by banks.
4. Final Approval from the respective RO of RBI may be sought after construction is completed. No deviation will be permitted or considered and any construction falling short of specifications will not be approved.

B. All other locations

1. Banks may construct new CCs at any place after informing the RO concerned of the RBI, under whose jurisdiction it is to be established.
2. The banks may also note to obtain all necessary approvals from other agencies before beginning construction.
3. Strict adherence to the Technical Specifications of construction in terms of circular DCM(CC)G-18/03.39.001/2008-09 dated November 14, 2008, must be ensured by banks.
4. Final Approval from the respective RO of RBI may be sought after construction is completed. No deviation will be permitted or considered and any construction falling short of specifications will not be approved.

Approvals for opening of CCs by PSBs & Private Sector Banks will continue to be given by our ROs as hitherto. All other banks (RRBs, Cooperative banks and foreign banks) may continue to seek approvals for opening of CCs from DCM, CO, Mumbai. The approvals will normally be accorded within 30 days provided the construction conforms to the specifications.

Yours faithfully,

(Uma Shankar)
Chief General Manager