Master Circular – Facility for Exchange of Notes and Coins

RBI Master Circular Link

Facility for Exchange of Notes and Coins

The Reserve Bank of India (RBI) has outlined a facility for the exchange of notes and coins at bank branches.

Key Highlights:

The RBI has delegated powers to banks to exchange soiled and mutilated notes, and has liberalized the definition of a soiled note.

Notes that are extremely brittle, burnt, charred, or stuck up, as well as those bearing “PAY”/”PAID” or “REJECT” stamps, slogans, or political messages, are also eligible for exchange.

Deliberately cut notes are not eligible for exchange. Banks are required to provide training to their staff on the facility and display a notice board informing customers about the exchange facility.

The RBI has an agreement with commercial banks for the exchange of notes and coins, and has guidelines for the disposal of notes adjudicated at bank branches.

The facility also covers the exchange of uncurrent coins, and the RBI monitors and controls the exchange process.

This Master Circular consolidates various circulars and notifications issued by the RBI on the subject, providing a comprehensive guide for banks and customers.

Chat with the Master Circular:

Download: Master Circular – Facility for Exchange of Notes and Coins

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