Currency Chest – UPSC Prelims

What is a Currency Chest?
  • A currency chest is a place where the Reserve Bank of India (RBI) stocks the money meant for banks and ATMs.
  • Administered by: These chests are usually situated on the premises of different banks but administered by the RBI.
  • Belongs to: The money present in the currency Gold hallmarkingchest belongs to the RBI. But the money kept in the strong room outside the currency chest belongs to the bank.
  • Security arrangement for the chests? The security of currency chests varies from one bank to the other where the chests are situated. The Reserve Bank of India (RBI) reimburses the security expenses to the bank as per the set norms.
  • Recovery Procedure if stolen: As per the set guidelines, the bank in which the currency chest is situated is liable to fulfil the loss of the currency chest.

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