Currency chest
GS PAPER III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Context: The theft to the tune of Rs 4.04 crore by a private security guard from the currency chest of Axis Bank in Chandigarh’s Sector 34 has put the affairs of currency chests in the spotlight.
- It is for the first time in Chandigarh when such a huge amount was stolen from inside a bank.
What is currency chest? Which authority monitors it?
- Currency chest is a place where the Reserve Bank of India (RBI) stocks the money meant for banks and ATMs.
- These chests are usually situated on the premises of different banks but administrated by the RBI.
- Representatives of the RBI inspect currency chests time-to-time, and update their senior officers about it.
- The money present in the currency chest belongs to the RBI and the money, kept in the strong room outside the currency chest belongs to the bank.
- In the case of Axis Bank, Sector 34, the stolen amount of Rs 4.04 crore was the property of the RBI.
How is the loss recovered in case of a crime resulting in loss of cash?
- As per the set guidelines, the bank, in which the currency chest is situated is liable to fulfill the loss of the currency chest.
- In the present case, Axis Bank will have to fulfill the loss from its account. There are certain categories of the loss.
- But in the cases of thefts, robberies and fraud from the currency chests situated within the bank premises, the bank is considered to be responsible.
- Regarding any crime, the bank concern is are also bound to submit a Fraud Monitoring Report (FMR) to the RBI.
What is the security arrangement for the chests?
- The security of currency chests is the subject of the bank in which chests are situated.
- The Reserve Bank of India (RBI) reimburses the security expenses to the bank as per the set norms.
- The expenses includes the cost of transportation of cash from one bank to another.
1.png)
