Currency Recirculation Policy
The Currency Recirculation Policy that went into effect in 2006 reduces the overuse of Federal Reserve Bank cash processing services by motivating recirculation best practices, and thereby decreasing the societal cost of providing fit currency. For more information, please refer to the following:
- Board of Governors' Federal Register Notice (Off-site)
- Currency Recirculation FAQs
- Currency Recirculation Policy Fact Sheet (PDF)
This program provides depository institutions with an option to help offset the opportunity costs associated with holding additional currency in their vaults to facilitate its recirculation. By participating in the Custodial Inventory Program, a depository institution is allowed to transfer currency to the Federal Reserve Bank's books, but continue to physically hold the currency within their secured facility.
This report provides timely information regarding a depository institution's cross-shipping activity, allowing each institution to better monitor and manage cross-shipping activity.
Quick Reference Guide
- Covered Denominations: $10, $20
- De Minimis Exemption: 875 bundles per quarter
- Recirculation Fee: $5.50 per bundle
NOTE: Consistent with the Currency Recirculation Policy and the current level of applicable costs, the Federal Reserve implemented an increase to the recirculation fee effective 2016.
Subzones: Albuquerque, Anchorage, Central Florida, Charleston, Columbus, Grand Rapids, Honolulu, Indianapolis, Las Vegas, Raleigh-Durham-Chapel Hill, San Diego and McAllen-Edinburg-Mission (South Texas).
For more detail on these topics, review the OC2 Referenced Information.