Letter to BS: The process of cash handling in banks needs an overhaul

This refers to “RBI to rewire cash handling system” (August 27). The process of cash handling in banks needs an overhaul. As per the existing arrangement, currency chests of banks are mandated to feed their branches with cash early in the morning and pick-up excess cash later. Since cash held overnight in these chests counts for CRR requirements, banks squeeze branches to manage these cash holding limits. 

As the number of cash carrying vans is limited, often the pick-up is scheduled at odd hours. If the service of handling cash is handed over to cash logistics companies, this problem can be