Cash Systems and Procedures A Handout (Module - 4)

Chapter or
Module
Cash Systems and Procedures Screen No. 1
Chapter or
Screen title
Receipt and Remittance of Treasure / Welcome
Voice-over Text
Welcome to the Module on Receipt and Remittance of Treasure



Welcome to the Module on
Receipt and Remittance of Treasure



Chapter or
Module
Cash Systems and Procedures Screen No. 2
Chapter or
Screen title
Receipt and Remittance of Treasure / Objectives
Voice-over Text
By the end of this module, you should be able to:
Describe the process of supplying and issuing of notes and coins
Explain the steps to follow for Remittance of soiled notes, Late receipt of remittance and
Handling of excess or shortage of notes or coins
Recall the steps to payment of freight changes.

By the end of this module, you should be able to:

Describe the process of supplying and issuing of notes and coins
Explain the steps to follow for Remittance of soiled notes, Late receipt of remittance and
Handling of excess or shortage of notes or coins
Recall the steps to payment of freight changes




















Chapter or
Module
Cash Systems and Procedures Screen No. 3
Chapter or
Screen title
Supply and Issue of Notes or Coins
Voice-over Text
Various steps involve with the supply and issue of Notes and Currency Coins
are: Role of RBI, Issue of Fresh Notes, Indent for Notes and Coins, Chest
Branches, Supplier of Notes and Remittance of Notes.


Various steps involve with the supply and issue of Notes and Currency Coins are:

Role of RBI
Issue offices of RBI arrange for periodically remittances of fresh notes coins to currency chests
(CCs) and small coins depots (SCDs) based on their indents and supply positions.

Issue of Fresh Notes
CCs are required to issue fresh notes or coins to general public in the course of payments or in
exchange of soiled or mutilated notes and also accept coins for payment in notes and vice versa.

Indent for Notes and Coins
The indents for notes and coins required for this purpose are to be forwarded by currency chest
branches o an annual basis (April-March) to their respective Link Officers.

Chest Branches
The Link Officers, in turn, are required to consolidated the indents denomination-wise and
submit them to RBIs Issue Offices under whose resource jurisdiction the chest function.

It is incumbent on the Chest-in-Charge to submit the indent for coins also along with notes
and ensure that the stock is replenished in time.

The chest branches should also make available coins to the bank branches, which are
linked to them.

Supplier of Notes
The suppliers of fresh notes or coins to currency chests and small coin depots are normally made by
Issue offices at the Banks cost at periodical intervals after issuing appropriate Remittance Orders

Remittance of Notes
Remittance of notes or coins is made by rail or road or air depending upon the value
thereof, distance, and convenience and security hazards.

Arrangement has also been made for sending exclusive coin remittances to CCs or SCDs.

In such cases, the coin remittances are first received by the Mint- linked Issue Offices from
the Mints and then sent to various Issue Offices from where the coins are further dispatched
in bags to CCs or SCDs through suitable means.









Chapter or
Module
Cash Systems and Procedures Screen No. 4
Chapter or
Screen title
Remittance of Fresh Notes or Coins
Voice-over Text
The fresh note remittances are to be received after ensuring that the boxes are
received as per invoice (denomination-wise), that the boxes are not outwardly damaged
or tampered with and the actual weight of each of the boxes tallies with the weight
recorded in the invoice.
Role of the Issuers

The fresh note remittances are to be received after ensuring that the boxes are received as per
invoice (denomination-wise), that the boxes are not outwardly damaged or tampered with and the
actual weight of each of the boxes tallies with the weight recorded in the invoice.

Role of Escort Officials
The Police escort accompanying the remittances should be relieved only after completion of the
above exercise and acknowledgement of the remittance by the chest custodians by putting their
signatures on a copy of the invoice carried by the in-charge of the escort party.

Role of Chest Officials
The remittance will be taken over by the chest officials in the presence of the RBI representative, if
he or she accompanies the same.



Chapter or
Module
Cash Systems and Procedures Screen No. 5
Chapter or
Screen title
Receipt of Coins and Cash
Voice-over Text
On receiving the fresh notes, the cash boxes are carried to the chest directly with a
preliminary verification done for the total numbers of packets received. The currency
chest should take over remittance of bank notes in higher denomination of 100 rupees
for counting before submission.

The fresh notes of various denominations will be taken over by chest as per RBI
instructions.
The content is verified by the officials by counting the numbers of packets.
The Currency Chest should take over remittance of banknotes in higher denomination of
Rs. 100.
Each packet is counted with the help of counting machine. (As per RBI instruction, counting
of number of currency is limited to a maximum of Rupees Three Lacs per piece, per day.)
The Chest should forward the copy of Preliminary Verification certificate to the Remittance
Section of RBI.

The receipt of remittance should be intimated by the chest to the issued officer concerned of RBI by
Telegram/Fax immediately

Note: All currency chests are expected to be equipped with weighing machine and note counting
machines.






Chapter or
Module
Cash Systems and Procedures Screen No. 6
Chapter or
Screen title
Late Receipt of Remittance
Voice-over Text
If the treasury boxes are delayed, provisions should be made for the immediate arrival
of boxes once it reach, the boxes should be moved to the chest office on the day of
arrival with no delay, and weighment should be completed on the same day.

To address late receipt of remittance:
Ensure that the treasure boxes are transported from the Railway Station to the Chest Office
immediately on arrival
Ensure that the treasure boxes are escorted by police in the light of the local law and order
situation on the same day.
Ensure that the weighment is completed on the same day for the purpose of relieving the police
escort party
Furnish the actual time of arrival of the remittance at the chest premises and not the time taken to
transfer the treasure boxes into the vault to avoid protracted correspondence







































Chapter or
Module
Cash Systems and Procedures Screen No. 7
Chapter or
Screen title
Shortage of Notes/Coins
Voice-over Text
In cases where the boxes/bags containing notes/coins are damaged/tampered with or
the scales of coin bags are broken or the weight of a note box/coin bag does not agree
with the weight mentioned in the invoice, the delivery of the note box/ coin bag will be
taken after opening the same and verifying the contents thereof in the presence of the
Banks representative and the police escort party. In cases where the damage/broken
seal is noticed in a coin bag remitted through a private transport operator, the open
delivery of the coin bag shall be taken in the presence of the transport operator bringing
the remittance.
In cases where the boxes/bags containing notes/coins are damaged/tampered with or the scales of
coin bags are broken or the weight of a note box/coin bag does not agree with the weight mentioned
in the invoice, the delivery of the note box/ coin bag will be taken after opening the same and
verifying the contents thereof in the presence of the Banks representative and the police escort
party.

Broken or Damage Seal

In cases where the damage/broken seal is noticed in a coin bag remitted through a private transport
operator, the open delivery of the coin bag shall be taken in the presence of the transport operator
bringing the remittance.

Shortage of Cash Amount

If any discrepancy is noticed later during the course of issue of fresh notes, which were not
subjected to, detailed counting, a report thereof will be sent by the chest to the Issue Office
concerned for farther action.

The defectively printed note should be sent to RBI to claim its value in case of any shortage in Mint-
sealed bags detected at the chests or depots, the same shall be borne by them and in case of net
excess, and the amount will be retained by the chests or depots themselves.

Exigencies or Operational Issue

Due to exigencies or operational reasons, the surplus of fresh or re-issuable notes with one chest is
sometimes diverted to another needy chest:
It has been observed that while currency chests readily accept re-issuable notes emanating from'
another chest of the same bank, they are reluctant to accept notes from chests of other banks.

This is largely due to the fact that when a branch sends re-issuable notes to another branch of the
same bank, fairly good notes arc sent, but when the remittance is intended for another bank, '
unsorted notes are sent.

Such double standards by chest-maintaining branches adversely affect the freedom of operation of
the Issue Offices in maintaining an efficient Resource Management System and implementing the
RBI's Clean Note Policy.

The currency chests must not, therefore, discriminate between their own bank branches and other
banks, while dispatching remittances of re-issuable notes.

Execution of Diversion Orders
RBI Issue Offices identify surplus / deficit chests within their jurisdiction and effect diversion of
surplus note/coin stock to deficit chests. The objects is to make excess note/coin stock at one place

serve the needs of the other and also to anticipate requirements of deficit chests and keep them well
stocked to meet the public demands.
For this, it will be necessary for the chest, which is dispatching notes/coins under diversion orders,
to implements the RBIs Remittance of fresh/reissuable notes should be affected strictly as per RBIs
order.
Diversion orders, not executed within the stipulated period, are liable to be cancelled by the RBI
Issue Office. In case, amount indicated in the Diversion Order it would make them liable for punitive
action.
Remitting/Receiving chest has to report to Issue Office the dispatch/receipt of remittance in the
Chest Slip on the same date of despatcj/receipt , The difference/discrepancy, if any, detected
subsequently, on verification should be settled between the concerned chests (banks) themselves
under advice to Issue Office. Futher, absolute secrecy should be maintained in respaect of the
remittance/diversion order received from RBI and schedule/details thereof.

Information on Volume of Currency

Currency chests should supply correct information on the volume of soiled notes held by them in the
chest slips, as the same will be taken into consideration by RBI while issuing orders for remittance
of soiled notes.

Sorting of Soiled Currency

The currency chest branches shall sort the notes by using Note Sorting Machines into re-issuable
and soiled or non-issuable notes.

While re-issuable notes arc to be put back into circulation, soiled notes accumulated at branches will
be remitted to Issue Office of RBI in unstapled packets of 100 pieces each with paper or plastic
band and thereafter packed in bundles containing 10 packets each of the same denomination under
no circumstances, gum tapes or rubber bands should be used.

The remittances of notes shall be securely packed in note boxes received from presses or wooden
cases or steel boxes purchased locally. Contents of box or boxes may be indicated on the Invoice
along with weight of each box.

Direct Dispatch of Soiled Note Remittance to CVPS Section

Wherever possible and convenient, the soiled notes from the local currency chests, in the required
quantity and after proper segregation may be sent directly to CVPS Section before the start of
CVPS operations at RBI Office.
The remittance should be securely packed to ensure safety during transit. The preliminary
verification of the remittance will be conducted by any two officers from CVPS Section.
The officers conducting PV shall forward an appropriate Memorandum duly signed by both of them
to the Chest Note Vault indication the details of receipt of remittance.
The joint Custodians of Chest Note Vault will Pass accounting entries as if the remittance/note were
received in the vault from currency chest and issued to CVPS Section for processing.
The local currency chests should ensure to send the notes (duly sorted) in steel boxes of good
condition with locks but without strapping. If the remittances are found to be not sorted properly into
issuable and non-issuable and if the re-issuable notes are found in excess of 5% the entire
remittance is liable to be returned to the banks at their cost by debiting the amount thereof to the
account of the bank maintained with RBI.

Claim of Soiled Notes

Currency chest should send remittance after prior approval of RBI. The remittance should be so
arranged that it does not reach RBI on Sunday or Holiday or during last week of the month of June.


Currency chest branches may claim service charge at the rate prescribed by the Reserve Bank of
India for the cash they receive from non-chest branches of other banks.

Wherever feasible the currency chest branches in close proximity to RBI office shall arrange
remittances preferably in steel boxes properly locked duly accompanied by their representative.


















































Chapter or
Module
Cash Systems and Procedures Screen No. 8
Chapter or
Screen title
Payment of Freight Charges
Voice-over Text
Freight shall be prepaid by issue of credit notes, which shall be filled up correctly and in
all respects and signed by the consignor as "Government Treasury Officer". Follow the
guidelines on the freight charges on the transfer of soiled notes to branches or RBI.
Standard Railway Fare
The railway fares of the police escort accompanying the remittances of treasure' shall
be paid by means of railway warrants issued by the concerned Police Department.
Full particulars of the remittance number of the credit note, number and date of the
parcel way bill, weight of the consignment and number of free tickets admissible to the
police escort should be recorded on the reverse of the warrant under the dated
signature of the officer-in-charge.
The number of free tickets allowed shall be recorded on all copies of the relative invoice
of remittance so as to enable the escort officer as well as the receiving office to ensure
that the escort party avails of the concession on their return journey also.
Further every time that a remittance of soiled notes is ordered from the chests, the
attention of the chest officers shall be especially drawn to this provision. In states or
centres where the state government has not introduced | the railway warrant system;
the fares shall be paid in cash.
Standard Railway Fare

The railway fares of the police escort accompanying the remittances of treasure' shall be paid by
means of railway warrants issued by the concerned Police Department.

Full particulars of the remittance number of the credit note, number and date of the parcel way bill,
weight of the consignment and number of free tickets admissible to the police escort should be
recorded on the reverse of the warrant under the dated signature of the officer-in-charge.

The number of free tickets allowed shall be recorded on all copies of the relative invoice of
remittance so as to enable the escort officer as well as the receiving office to ensure that the escort
party avails of the concession on their return journey also.

Further every time that a remittance of soiled notes is ordered from the chests, the attention of the
chest officers shall be especially drawn to this provision. In states or centres where the state
government has not introduced the railway warrant system; the fares shall be paid in cash.

Varying Freight Charges

As varying rates of freight are available in respect of notes and coins, complete particulars about the
nature of the remittance dispatched i.e. whether it is a remittance of notes or coins or both or the
case of mixed remittances, the separate weights of notes and coins, as also the actual amounts of
freight payable shall be given in the credit notes.

If any remittance sent at railway risk includes coins on which percentage charges calculated at ad-
valorem are payable over and above the usual freight charges under the tariff rules, the value of
those coins shall also be indicated.

Trans-shipment of Empty Remittance Boxes

In the case of trans-shipment of empty remittance boxes by rail between the Bank's offices, chests,
depots, the press and the mints, the consignments shall be dispatched by passenger train and a
certificate confirming that they are empty Government treasure boxes furnished with a view to
availing j of the quarter parcel rate unless bookings by a goods train serves the purpose and is also
cheaper.


Consignments of empty Nasik note cases returned to the press shall be accompanied by a
certificate in the following form:

"Certified that the empty cases tendered are the containers of Government Treasury received by the
undersigned which are being sent as empties returned to the General Manager, Note Press--
.'Vide Rule No. 727 (l)of IRCA Coaching tariff No. 19 Part I. The cases arc subject to charges at
quarter parcel rate.

Concession Fare

In case concession fares or freight are allowed by any other transport agency the same should be
fully availed off.

If the remittance-is required to be sent by road for any reason, the prior permission of concerned
Issue Office should be taken indicating the reasons there for.

In such cases, reasonable charges are reimbursed to the chest. With effect from April 01, 2003, the
bills for the eligible expenditure incurred by currency chests on remittance treasure between chests
(both infra-circle and inter-circle) and to the RBI Issue Offices are reimbursed by the concerned
Issue Office of RBI instead of Central Accounts Section, RBI, Nagpur.

The currency chest branches of banks are, therefore, required to forward their claims for
reimbursement of freight charges, police escort charges etc. to their respective Link Offices for
onward transmission to the Issue Department of RBI. Chests which do not have Link Offices may
send their claims directly to RBI office.





Chapter or
Module
Cash Systems and Procedures Screen No. 7
Chapter or
Screen title
Shortage of Notes/Coins
Voice-over Text
In cases where the boxes/bags containing notes/coins are damaged/tampered with or
the scales of coin bags are broken or the weight of a note box/coin bag does not agree
with the weight mentioned in the invoice, the delivery of the note box/ coin bag will be
taken after opening the same and verifying the contents thereof in the presence of the
Banks representative and the police escort party. In cases where the damage/broken
seal is noticed in a coin bag remitted through a private transport operator, the open
delivery of the coin bag shall be taken in the presence of the transport operator bringing
the remittance.
In cases where the boxes/bags containing notes/coins are damaged/tampered with or the scales of
coin bags are broken or the weight of a note box/coin bag does not agree with the weight mentioned
in the invoice, the delivery of the note box/ coin bag will be taken after opening the same and
verifying the contents thereof in the presence of the Banks representative and the police escort
party.

Broken or Damage Seal

In cases where the damage/broken seal is noticed in a coin bag remitted through a private transport
operator, the open delivery of the coin bag shall be taken in the presence of the transport operator
bringing the remittance.




Chapter or
Module
Cash Systems and Procedures Screen No. 7
Chapter or
Screen title
Shortage of Notes/Coins
Voice-over Text
In cases where the boxes/bags containing notes/coins are damaged/tampered with or
the scales of coin bags are broken or the weight of a note box/coin bag does not agree
with the weight mentioned in the invoice, the delivery of the note box/ coin bag will be
taken after opening the same and verifying the contents thereof in the presence of the
Banks representative and the police escort party. In cases where the damage/broken
seal is noticed in a coin bag remitted through a private transport operator, the open
delivery of the coin bag shall be taken in the presence of the transport operator bringing
the remittance.
In cases where the boxes/bags containing notes/coins are damaged/tampered with or the scales of
coin bags are broken or the weight of a note box/coin bag does not agree with the weight mentioned
in the invoice, the delivery of the note box/ coin bag will be taken after opening the same and
verifying the contents thereof in the presence of the Banks representative and the police escort
party.

Broken or Damage Seal

In cases where the damage/broken seal is noticed in a coin bag remitted through a private transport
operator, the open delivery of the coin bag shall be taken in the presence of the transport operator
bringing the remittance.



Chapter or
Module
Cash Systems and Procedures Screen No. 7
Chapter or
Screen title
Shortage of Notes/Coins
Voice-over Text
In cases where the boxes/bags containing notes/coins are damaged/tampered with or
the scales of coin bags are broken or the weight of a note box/coin bag does not agree
with the weight mentioned in the invoice, the delivery of the note box/ coin bag will be
taken after opening the same and verifying the contents thereof in the presence of the
Banks representative and the police escort party. In cases where the damage/broken
seal is noticed in a coin bag remitted through a private transport operator, the open
delivery of the coin bag shall be taken in the presence of the transport operator bringing
the remittance.
In cases where the boxes/bags containing notes/coins are damaged/tampered with or the scales of
coin bags are broken or the weight of a note box/coin bag does not agree with the weight mentioned
in the invoice, the delivery of the note box/ coin bag will be taken after opening the same and
verifying the contents thereof in the presence of the Banks representative and the police escort
party.

Broken or Damage Seal

In cases where the damage/broken seal is noticed in a coin bag remitted through a private transport
operator, the open delivery of the coin bag shall be taken in the presence of the transport operator
bringing the remittance.



Chapter or
Module
Cash Systems and Procedures Screen No. 7
Chapter or
Screen title
Shortage of Notes/Coins

Voice-over Text
In cases where the boxes/bags containing notes/coins are damaged/tampered with or
the scales of coin bags are broken or the weight of a note box/coin bag does not agree
with the weight mentioned in the invoice, the delivery of the note box/ coin bag will be
taken after opening the same and verifying the contents thereof in the presence of the
Banks representative and the police escort party. In cases where the damage/broken
seal is noticed in a coin bag remitted through a private transport operator, the open
delivery of the coin bag shall be taken in the presence of the transport operator bringing
the remittance.
In cases where the boxes/bags containing notes/coins are damaged/tampered with or the scales of
coin bags are broken or the weight of a note box/coin bag does not agree with the weight mentioned
in the invoice, the delivery of the note box/ coin bag will be taken after opening the same and
verifying the contents thereof in the presence of the Banks representative and the police escort
party.

Broken or Damage Seal

In cases where the damage/broken seal is noticed in a coin bag remitted through a private transport
operator, the open delivery of the coin bag shall be taken in the presence of the transport operator
bringing the remittance.