Mumbai, May 24 (KNN) The Reserve Bank of India has asked banks to follow its instructions on CCTV coverage of all cash-handling operations in currency chests, including packing of soiled notes.

“We reiterate that all the instructions on remittance of soiled notes issued from time to time must be followed meticulously,” RBI said in a notification.

The RBI notification came after one of the central bank’s regional offices reported that the work of packing soiled notes by a currency chest was undertaken outside the strong room/vault, which resulted in the CCTV failing to capture the operations.

Currency chests facilitate the distribution of banknotes and rupee coins, authorised by the RBI to be set up at select branches of scheduled banks.

The currency chest branches are expected to distribute banknotes and rupee coins to other bank branches in their area of operation.

While taking over the remittance by the RBI’s office, shortage was detected. Subsequently, a preliminary enquiry revealed that the Potdar (a junior RBI representative) had not accompanied the remittance, the banking regulator said in a circular.

Referring to its 2008 circular, the RBI said “the coverage of CCTVs surveillance should also cover all cash operations in the vaults/strong rooms and other cash handling areas to identify any mischief/irregularity… we had advised the banks that Potdar from the (currency) chest remitting bank should accompany soiled note remittance.” (KNN Bureau)