The Reserve Bank of India (RBI) has imposed a penalty on Punjab National Bank (PNB). The reason for the penalty is a shortage of notes at currency chest.
| Particulars | Details |
|---|---|
| Name of the Authority | Reserve Bank of India |
| Nature and details of the action(s) taken or order(s) passed | Imposition of monetary penalty of Rs. 2,50,000/- and Rs. 1,10,000/- |
| Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority | 02.02.2026 |
| Details of the violation(s) / contravention(s) committed or alleged to be committed | Shortage of Notes at Currency Chest |
| Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible | Only to the extent of the amount of penalty |
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What Are Currency Chests and Why Are They Important?
Currency chests are special facilities where cash is stored on behalf of the Reserve Bank of India (RBI). These chests are usually located inside select bank branches, including public sector banks like Punjab National Bank (PNB). Although the cash is physically kept in bank premises, it belongs to the RBI, not the bank.
The main purpose of a currency chest is to ensure the smooth supply of currency notes in a region. Banks withdraw cash from currency chests to meet daily customer demand and also deposit excess cash back into them. These chests play a key role in maintaining cash availability across ATMs, bank branches, and rural areas.
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Why Is a Shortage at a Currency Chest a Serious Issue?
A shortage of notes at a currency chest means that the actual cash available does not match the records. This can happen due to errors in counting, handling, storage, or internal controls. Since the cash belongs to the RBI, any shortage is treated as a serious violation.
Banks that manage currency chests are expected to follow strict RBI guidelines, including regular verification, proper accounting, and strong security measures. If discrepancies are found, the RBI can impose penalties to enforce discipline and accountability.
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