RBI Raises Incentives For Distribution Of Coins To Rs 65 From Rs 25 Per Bag

The Reserve Bank of India (RBI) increased incentives for banks for the distribution of coins to the general public to Rs 65 from Rs 25 per bag.

The Reserve Bank of India (RBI) increased incentives for banks for the distribution of coins to the general public to Rs 65 from Rs 25 per bag, with effect from September 1, 2021. The central bank, while reviewing incentives and other measures to enhance the distribution of coins, announced that the banks will also be provided an additional incentive of Rs 10 per bag for coin distribution in rural and semi-urban areas. "With effect from September 1, 2021, an incentive of Rs 65 per bag for distribution of coins (instead of Rs 25 as earlier) will be paid on the basis of net withdrawal from currency chest (CCs), without waiting for claims from banks," the RBI said in a circular on Friday, August 27. In order to meet the coin requirements of bulk customers - who require more than one bag in a single transaction, banks are advised to provide coins to such customers purely for business transactions, according to the RBI statement. The currency chest branch will pass on the incentive to the linked bank or branches for the coins to be distributed by them on a pro-rata basis within one week from the receipt of incentives from the RBI.