RBI makes exchange of damaged currency notes hassle-free

Exchanging soiled and damaged currency notes with fresh ones has been made easier with the Reserve Bank asking banks to set up facilities in this regard at their branches. Even the mutilated currency notes, with essential features in tact, can be exchanged at designated branches of the banks, RBI said while issuing a Master Circular on exchange of notes and coins. The Master Circular on exchange of notes and coin, issued after six years, asked banks to provide "customer services more actively and vigorously" by providing facilities for exchange of soiled notes at all branches. RBI has also asked the all bank branches to accept coins and currency notes for transactions or exchange. The bank branches will also be required to provide new and good quality notes and coins of all denominations to customers "so that there is no need for them to approach the RBI Regional Offices", said the Master Circular, which is primarily a compilation of the circulars issued by the central bank from time to time. RBI has also clarified that currency notes with slogans and messages of political nature written on them by users would cease to be a legal tender and hence could not be exchanged with fresh notes. As regards the damaged and mutilated currency notes, RBI said the exchange facility would be available at designated branches of the banks. The designated branches have also been asked to display prominently a notice saying, 'Mutilated Notes are Accepted and Exchanged here' for the convenience of the customers. In addition, the list of such designated branches would also be available on the official websites of the respective banks, the circular said. The RBI has further clarified that soiled and cut currency notes would be exchanged by all bank branches free of cost. Customers, it added, could also use the soiled and cut notes to pay government dues and make deposits in their accounts with the banks. According to the RBI circular, currently notes of all denominations which are in two pieces, with essential features in tact, can be exchanged as soiled notes in all bank branches. In case of torned notes being submitted for exchange, the circular said, "both the pieces should be of the same note, ie the complete number in an undivided area on each should be the same." RBI has also clarified that the soiled notes being submitted to the banks for exchange should not be in more than two pieces. The currency notes with slogans and message of a political nature written on it, the RBI added, would cease to be a legal tender and hence could not be exchanged for fresh notes. About mutilated notes with portions missing or which is composed of several pieces, the circular added, these can be presented for exchange at the designated branches of the banks or Issue Offices of the RBI. In case the currency notes are extremely brittle, badly burnt or inseparably stuck, they can only be exchanged at Issue Offices of the RBI, the circular added.

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