Insight and Innovation
Call for information
We are seeking to understand what
impact the Currency Recirculation
Legislation has had on our customers.
We have developed a short
questionnaire for you to complete
Reducing the Risk
Recirculation Policy FAQ.pdf
U.S. Currency Recirculation Policy Changes
For United States commercial cash handlers July 1st 2007 see the introduction of new currency re-circulation policies.
As part of a series of policy changes the U.S. Federal Reserve Bank (FRB) will start to charge for the cross shipping of fit $10 and $20 bills between depository institutions and the Central Bank's branches.
An institution cross shipping 1,000 bundles (that's $10m in $10 bills) each week will face an annual cross shipping charge of $242,500, for heavier cross shippers the fee will be even higher!
The policy changes are complex, and the steps your organization takes to manage these changes will have a very direct financial impact. To help you De La Rue can provide practical advice on understanding the operational implications of the new policy, the likely scale of the penalties your organization could face, and explore with you the options to minimize costs.
The Policy Changes What they are?
After extensive industry consultation the Federal Reserve are introducing three important policy changes:
- Cross shipping penalties for cross shipping fit $10 and $20 bills. Read more about the charges and use our cross shipping calculator to measure the costs for your organization.
- The introduction of fitness guidelines for U.S. banknote sorting. Read more about what constitutes a fit or unfit banknote.
- A Custodial Inventory (CI) Program to support the increased commercial sector holding and recirculation of $10 and $20 bills by depository institutions. Read more about becoming a participant in the CI Program.
Your next steps
There are many ways that De La Rue can help you better understand the policy changes. Read more about the new policies and how De La Rue can help in this section of our website.
You can listen to our podcast about what's happening and the implications for your organization.
And for more information, you can write to currencyrecirculation@us.delarue.com or call our toll free helpline on 1-888 582 1142 to speak to one of our specialist advisors.
From July 1st 2007, the cross shipping of fit $10 and $20 bills - that is the depositing at, and withdrawing from, the Federal Reserve fit $10 and $20 bills within the same week will be subject to a cross shipping penalty charge of $5 per bundle of 1,000 notes.
There is a de minimus limit of 875 bundles per quarter approximately 13 bundles a day - below which smaller depositors will not be charged.
The charge applies on a per FRB zone or sub zone basis so an institution with more than one vault in the same FRB zone or sub zone must consider total deposit and withdrawal activity within the same FRB defined area to avoid cross shipping charges.
To help your organization calculate the cost of cross-shipping De La Rue has created an easy to use cross-shipping calculator. De La Rue's consultants can advise institutions on more complex calculations particularly where fitness levels vary from denomination to denomination or where an institution operates across multiple FRB zones or sub zones
More information about the cross shipping policy can be found in our recirculation policy frequently asked questions document, by writing to us at currencyrecirculation@us.delarue.com or by calling our toll free helpline on 1-888 582 1142 to speak to one of our advisors.
The cross shipping policy specifically refers to fit currency, that is currency that the Federal Reserve has determined as good for re-issue.
Unfit notes, along with other denomination bills can be returned to the FRB as normal, however, fit $10 and $20 bills found amongst unfit notes will be counted when assessing cross shipping penalties.
The only sure way to avoid penalties is to ensure deposits are fitness sorted to the required FRB standards.
More information about the fitness guidelines can be found in our recirculation policy frequently asked questions document, by writing to us at currencyrecirculation@us.delarue.com or by calling our toll free helpline on 1-888 582 1142 to speak to one of our advisors.
The Custodial Inventory (CI) program has been developed by the Federal Reserve to allow participating depository institutions to hold cash inventory in their vaults but on the books of, and on behalf of, the FRB.
The program is designed to mitigate the opportunity costs associated with holding additional currency in vaults long enough to facilitate recirculation. As with the recirculation policy, the CI program is currently restricted to $10 and $20 bills only.
Eligible participants will be required to hold one day's average daily payments in $10 and $20 bills on their own books before putting other currency into the program's inventory cap. Once this criteria is met the institution may place up to 4 days worth of average daily payments of the same denomination into the cap. This currency while held in the institution's (or outsource provider's) vault is held off balance sheet and therefore implementing a CI site is a means of reducing non-earning assets.
As an example, if an institution's average daily payments in $10 and $20 was $20 million then provided $20 million (1 days worth) is held on the institution's books up to $80 million (4 x $20 million) can be held in the inventory cap off balance sheet.
More information about the Custodial Inventory program can be found in our recirculation policy frequently asked questions document, by writing to us at currencyrecirculation@us.delarue.com or by calling our toll free helpline on
1-888 582 1142 to speak to one of our advisors.
De La Rue has unrivalled experience of currency handling and management issues and has worked in many countries around the world where similar recirculation policy changes have been made. We have a range of ways we can help your organization minimize the impact, and possibly maximize the opportunities, the changes bring.
To help De La Rue can provide practical advice on understanding the operational implications of the changes, the likely scale of the penalties your organization will face, and explore with you the options to minimize costs. Please contact us for more details on the practical advice we can offer.
Vault management and cash forecasting solutions
Our market leading enterprise-wide fully networked cash management software family is the key to capturing vault management information, forecasting requirements, and striking the optimal balance between depositing, withdrawing, and holding currency.
The flexible modular software package is available in configurations from just 3 users to more than 1,000 users operating at a single vault or networked across many vaults countrywide but all administered centrally, thus enabling fully consolidated cross shipping and CI Program monitoring.
Our software packages are fully compatible with most currency counting and sorting equipment and can be interfaced to a wide range of accounting, banking, and other external systems.
De La Rue offers its own range of best in class banknote counting and sorting equipment including the Cobra desktop and CPS high banknote sorters.
Our equipment provide fitness sorting to FRB and customer specified fitness standards, unrivalled counterfeit detection including capture of hard to find $100 'super dollars' all at speeds of up to 33 notes per second more than 100,000 notes per hour and depending on pocket configuration, sorting routines, and software applications all in a single 'one pass' process.