Federal Reserve Bank Regulations for Currency Deposits

The purpose of the Federal Reserve Board is to make sure that there is enough cash in circulation to meet the demand of the public. Then there are cash offices of Federal Reserve Banks that provide cash services to thousands of banks, credit institutions, and savings and loan companies in the U.S. Together, the Federal Reserve Board and Banks aim to maintain confidence in U.S. currency. And in doing so, they have specific regulations for currency deposits, such as using a proper bank deposit bag.  

Here is some information about Federal Reserve Bank regulations that banks must adhere to when depositing currency and how to ensure that this process goes smoothly.

Cash Deposits: Approved Packaging and Preparing Cash

It is required by the Federal Reserve Bank to package all currency deposits into clear, one-time use plastic bags. Alternatively, it is also allowed to use clear plastic or metal containers. Clear plastic bags must meet the following requirements.

• Material must be a minimum of 5-mil or equivalent
• List logo or name
• Clear enough to easily see contents
• Not contain over 16 bundles
• Securely sealed
• Tamper evident seal

The Federal Reserve Bank also requires you to bundle currency according to denomination. All bundles must be full straps or full bundles. It is necessary to all remove pins, clips, staples, and rubber bands. Your institution’s name, ABA routing number, and endpoint number must be stamped on each band, and only U.S. currency within the same denomination can be included in each strap.

Coin Deposits: Approved Packaging and Preparing Coins

For coin deposits, coins need to be placed into plastic bags or canvas bags with seals. These are the requirements for plastic bags.

• Tamper evident seal
• Reinforced handle to carry at least 100 pounds
• Material of 6.5-mil gauge or equivalent
• Approximate size of a standard canvas bag
• Clear packaging material that clearly displays contents
• Label opposite the handle with all important information

The Federal Reserve Bank does not accept wrapped coins, and all coins must be bagged by denomination. A bag that appears to have been compromised or that has a seal that does not properly deter access to the contents may be refused by the FRB.

Compliant and Reliable Cash Deposit Bags

Whether you’re depositing a large sum of cash or just a little, Superior Bag’s Cash In Transit Bags are made with a durable construction and are perfect for overnight deposits. We offer cash deposit bags in small, medium, and large sizes with detailed lines for depositor instructions, monetary amounts, and other key pieces of information. Feel free to give us a call at 800-522-1236 or send us an email to [email protected] if you have any questions about the right bank deposit bag for your business.

To learn more about Federal Reserve Bank regulations, see the Cash Services Manual of Procedures. There are also federal regulations and requirements that pertain to altered, partial, contaminated, and bent bills and coins that banks should be aware of before making deposits. This document also covers orders for cash, handling differences in currency and coin, and the proper transportation of cash from one location to another.