Specified Bank Notes (SBNs) – Deposit under Guarantee Scheme to decongest the storage facilities at banks

RBI/2016-17/153
DCM (Plg) No.1383/10.27.00/2016-17

November 24, 2016

The Chairman / Managing Director/Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks / Regional Rural Banks /
Urban Co-operative Banks / State Co-operative Banks

Dear Sir,

Specified Bank Notes (SBNs) – Deposit under Guarantee Scheme to decongest the storage facilities at banks

As you are aware there is a massive accumulation of SBNs at branches of banks and currency chests putting strain on processing capacities and storage facilities. This is slowing down the deposit of accumulated SBNs into chests.

2. For resolution of the problem it is decided to revive the Guarantee Scheme to enable deposit of SBNs with RBI. The details of the scheme are as under:

1. Banks may deposit SBNs directly with the offices of RBI under whose jurisdiction they are located. These SBNs will remain, in the vaults of RBI, under the lock and key of the depositing banks till taken up for examination.
2. For the SBNs deposited by banks, RBI will afford credit to their current accounts maintained with RBI. Thereafter, if any shortage, counterfeit note, mutilated note, etc. is detected during detailed processing at RBI, the value of the same will be recovered from the bank concerned.
3. This facility will be extended to all banks and be available at all our Issue Offices.
4. To avail the facility banks need to enter into an agreement (Annex) with Regional Offices of RBI concerned.

3. The scheme is effective form November 25, 2016

4. Please acknowledge receipt.

Yours faithfully,

(P Vijaya Kumar)
Chief General Manager

Encl.