Linkage scheme: Linking of non chest branches with currency chests- the way forward; Reserve Bank of India

Abstract

The report examines the issues and possible solutions for the linkage scheme of Reserve Bank of India (RBI) being regulated by the Department of Currency Management (DCM) through its 19 Issue Offices in various circles. An overview and evaluation of the Linkage Scheme has been provided in the report, diagnosing the problems in the design and operations of the linkage scheme. The process adopted for carrying out the scheme by the currency chest managed by public sector and private sector banks has been studied in detail. Method of analysis includes primary data collection through detailed interview with the currency chests and its linked banks, blueprinting the service process of various currency chests (a comparison analysis has been done on the service provided by them under the scheme). The research draws attention to the problems faced by the linked banks regarding the design and the service process, recommendations has been given in each section under the study such as alternatives to the current linkage scheme, suggestions on improving and streamlining the operations with regard to the process involved in the delivering the service.