What is a “Currency Chest”?

What is the News?

A Private Security Guard in Chandigarh has stolen Rs 4 crore from a Currency Chest of Axis Bank.

What is a Currency Chest?
  • Firstly, A currency chest is a place where the Reserve Bank of India (RBI) stocks the money meant for banks and ATMs.
  • Secondly, Administered by: The RBI administers these chests.  Even though these chests are usually situated on the premises of different banks.
  • Thirdly, Belongs to: The money present in the currency chest belongs to the RBI. But the money kept in the strong room outside the currency chests belongs to the bank.
  • Fourthly, 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.
  • Fifthly, 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.

Source: Indian Express

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