RBI enhances the incentive for distribution of coins over the counter by banks to Rs 65

RBI enhances the incentive for distribution of coins over the counter by banks to Rs 65

• The Reserve Bank of India has increased the incentive that it gives to the banks for the distribution of coins over the counter from Rs 25/bag to Rs 65/bag of coin. This will be effective from September 01, 2021.
• The RBI provides incentives to banks and currency chests under the “Currency Distribution & Exchange Scheme (CDES)” for the distribution of coins over the counter. This is done to promote the circulation of coins. 
• An additional incentive of Rs. 10/- per bag would be paid for coin distribution in rural and semi-urban areas on the submission of a CA / Auditor certificate to this effect. (.i.e Rs 75/bag)

Points to remember:

1. What incentive will RBI pay to commercial banks for the distribution of one bag of coin?= Rs 65

Source: RBI