IndusInd Bank today opened its first currency chest – at the bank’s Thane branch.
The currency chest has been set up with the most modern, hi-tech machines for note counting, sorting and counterfeit detection, Mr Romesh Sobti, Managing Director and CEO, IndusInd Bank, said today.
A currency chest is a repository of currency notes that lies within the premises of a bank. But the money put into it is treated as having been deposited with the Reserve Bank of India.
Therefore, it helps a bank to meets its ‘cash reserve ratio’ requirements, while at the same time not parting with the cash. Banks, therefore, desire to have as many currency chests as possible.
Earlier, banks had to report the balances in the chest to the RBI at the close of each day. However, today typically the chests are linked up to the RBI that all transactions could be monitored by RBI real time.
IndusInd Bank has said in a notification to the stock exchange that its second currency chest is coming up at New Delhi and would be made operational by the end of the financial year.