Currency Chests :

The Reserve Bank of India has made adequate arrangements for the issue of currency notes and distribution of coins and currency notes across India. One of the distribution channel used by the Reserve Bank is Currency Chests. Reserve Bank has authorized selected branches of banks to establish currency chests. In these currency chests, bank notes and coins are stocked/stored on behalf of the Reserve Bank. Currency chests which are managed by banks, store soiled and re-issuable notes and also fresh currency notes. The banks review the currency notes (which are in their view not fit for circulation and forward them to RBI for further action. After reexamining them, RBI if necessary, re circulate them, otherwise arranges to destroy them, as per their procedures. The issue department co-ordinates with printing presses and mints for its regular supply of notes and coins. It also ensures that notes/coins are distributed through different channels such as Reserve Bank counters, banks, post offices, co-operative banks.