Facility for Exchange of Notes and Coins
The Reserve Bank of India (RBI) has issued a master circular outlining the facility for exchange of notes and coins at bank branches.
The circular delegates powers to bank branches to exchange soiled, mutilated, and defective notes, as well as uncurrent coins.
It defines a soiled note as one that is dirty, stained, or contaminated, and a mutilated note as one that is torn, cut, or defaced.
The circular also provides guidelines for the presentation and passing of mutilated notes, and the disposal of notes adjudicated at bank branches.
Additionally, the circular covers the exchange of notes bearing “PAY”/”PAID” or “REJECT” stamps, notes with slogans or political messages, and deliberately cut notes.
It also emphasizes the importance of training bank staff and displaying notice boards at bank branches.
The circular outlines the agreement between the RBI and commercial banks, and the monitoring and control mechanisms in place.
Uncurrent coins are also covered under the circular, with guidelines for their exchange and disposal.
Chat with the Master Circular:
Download: Master Circular – Facility for Exchange of Notes and Coins