RBI - Scheme of Incentives & Penalties – Review

RBI/2014-15/604
DCM (CC) No. 4846/03.41.01/2014-15

May 21, 2015

The Chairman & Managing Director /
Chief Executive Officer,
All Banks

Madam / Dear Sir,

Scheme of Incentives & Penalties – Review

Please refer to our Master Circular DCM (CC) No.G-5/03.39.01/2014-15 dated July 1, 2014 on the captioned subject.

2. As you are aware, the scheme of Incentives & Penalties was introduced in 2008 and has been revised expanding its scope as also its beneficiaries with a thrust on technology led interventions. The last such revision introduced incentives for machines providing cash related retail services to the public as also for Note Sorting Machines.

3. We have been receiving a lot of queries / suggestions from banks on the scheme. The scheme is being reviewed in the light of the suggestions; especially on various machines. The banks are therefore advised that claims submitted up to June 30, 2015 will be settled by our offices and any future purchase of machines may be planned only after issue of the revised scheme. However, the exchange facility for notes / coins / cut & mutilated notes may continue to be provided as hitherto.

Yours faithfully,

(Uma Shankar)
Chief General Manager