Improve Currency Mgmt Ops: Finmin to Banks

....."We have asked banks to undertake a review of the bin occupancy in each of their currency chests and put in place an effective management information system for cash management," said a finance ministry official, who did not wish to be named. The committee has suggested that bin occupancy in rural areas should be limited to 40% of the VHL. Bankers feel that RBI should issue consolidated guidelines over currency management operations that should cover security issues and provide incentives to efficient banks. "Security is a big issue for us. Besides, the rates of incentives were also fixed long ago and have not been revised," said a senior official with SBI, the country's biggest lender. The committee also recommended that the Reserve Bank of India should initiate discussions with the states for providing a dedicated force for guarding banks' currency chests.......... 

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