RBI Rolls Out Penalty Framework for Banks and Currency Chests to Strengthen Customer Service Standards

The Reserve Bank of India (RBI) has released a Master Direction with a new penalty framework for currency chests and bank branches to identify gaps in customer service. With effect from today, the scheme is intended to maintain operational efficiency, adhere to the Clean Note Policy, and protect public interests.

 

Highlights:

Objective:

This framework seeks to enhance transparency and accountability in banking operations while ensuring seamless customer service. The RBI emphasizes that penalties are intended to improve compliance rather than punish institutions.

 

Impact:

The initiative reinforces the RBI’s commitment to maintaining high standards in currency management and customer service across India’s banking sector.

 

Sources: RBI Circular, TaxGuru; April 1, 2025