Facility for exchange of notes and coins at bank
branches
(a)
All
branches of banks should provide the following customer services:
(i) Issuing fresh /
good quality notes and coins,
(ii) Exchanging
soiled / mutilated / defective notes, and
(iii) Accepting coins
and notes.
(b) All branches
should provide the above facilities on all working days. The scheme of
providing exchange facility by a few select currency chest branches on one of
the Sundays in a month will remain unchanged.
(c) Such facility
should be given wide publicity.
(d) No Branch should
refuse to accept small denomination notes / coins.
RBI (Note Refund) Rules, 2009 -
Delegation of powers
(a)
No
person is entitled as a matter of right to recover the value of any lost,
stolen, mutilated or imperfect currency note from the Government or RBI.
However, RBI may prescribe the conditions subject to which, the value of such notes
may be refunded as a matter of grace.
(b) All branches of
banks have been delegated for exchange of mutilated / defective notes free of
cost.
Liberalized definition of a
Soiled Note
A
‘soiled note’ means a note which has become dirty due to normal wear and tear and also includes a two piece note pasted together
wherein both the pieces belong to the same note with no essential feature
missing. These notes should be accepted over the counters.
Such
notes should not be re-issued and shall be deposited in currency chests for
onward transmission to RBI.
Mutilated Notes – Presentation
and Passing
A
mutilated note is a note of which a portion is missing or which is composed of
more than two pieces. The notes so presented shall be accepted, exchanged and
adjudicated at any of the bank branches.
Extremely
brittle, burnt, charred, stuck up Notes
Notes which have
turned extremely brittle or are badly burnt, charred or inseparably stuck up
together and, therefore, cannot withstand normal handling, shall not be
accepted by the bank branches for exchange. Instead, the holders may tender these
notes to the concerned Issue Office where they will be adjudicated under a
Special Procedure.
Procedure for exchange of soiled/
mutilated/ imperfect notes
Exchange of soiled notes
Notes
presented in small number: Where the number is up to 20 pieces with a maximum
value of Rs.5000 per day, banks should exchange them over the counter, free of
charge.
Notes presented
in bulk:
Where the number exceeds 20 pieces or Rs.5000 in value per day, banks may
accept them, against receipt, for value to be credited later. Banks may levy
service charges as permitted by RBI.
Exchange of mutilated and imperfect
notes
While
designated branches may continue to follow the procedure laid down in Part III
of NRR, 2009 for exchanging mutilated
and imperfect notes and issue receipt for the notes presented for adjudication,
non-chest branches are required to follow the following procedure.
Notes
presented in small number: Where the number is up to 5 pieces, non-chest
branches should follow the above procedure and pay the exchange value over the counter. If such branches are not able to adjudicate
the mutilated notes, the notes may be received against a receipt and sent to
the linked currency chest branch for adjudication. The probable date of payment
should be informed to the tenderers on the receipt itself and the same should
not exceed 30 days. Bank account details should be obtained from the tenderers
for crediting the exchange value by electronic means.
Notes
presented in bulk:
Where the number is more than 5 pieces not exceeding Rs.5000 in value, the
tenderer should send the notes to nearby currency chest branch by insured post
giving bank account details or get it exchanged there in person. All others should
approach nearby currency chest branches. Currency chest branches receiving
mutilated notes through insured post should credit the exchange value to the
account of sender by electronic means within 30 days of receipt of notes.
Tenderers
aggrieved with the service provided in this regard may approach Banking
Ombudsman.
Notes bearing
"PAY"/"PAID" "REJECT" stamps
(a) Every Branch
Manager and every Officer-in-charge of the Accounts or Cash Wing shall act as 'Prescribed
Officer' to adjudicate the notes received for exchange in accordance with RBI
(Note Refund) Rules, 2009. After adjudicating, the Prescribed Officer should
record his order by subscribing his initials to the dated 'PAY'/ 'PAID'/
'REJECT' stamp which should also carry the name of the bank and branch. The
stamp should be held under the custody of the 'Prescribed Officer'.
(b) Mutilated / defective
notes bearing 'PAY'/'PAID' (or 'REJECT') stamp, if presented for payment should
be rejected.
Notes bearing slogans / political
messages, etc.
Any
note with slogans and message of a political nature written across it ceases to
be a legal tender and the claim on such a note will be rejected. Similarly,
notes which are disfigured may also be rejected.
Deliberately cut notes
The notes, which
are found to be deliberately cut, torn, altered or tampered with, if presented
for payment of exchange value should be rejected. The details such as the name
of the tenderer, the number of notes tendered and their denominations should be
reported to RBI. The matter should also be reported to local police in case a
large number of such notes are tendered.
Training
RBI conducts training
programmes for 'Prescribed Officers' on a priority basis. These training
programmes are intended to provide knowledge in the process of adjudication of
defective notes. Hence, it is imperative that the Prescribed Officers are
deputed for such programmes.
Display of Notice Board
All bank
branches are required to display at a board indicating the availability of note
exchange facility with the legend, "SOILED/MUTILATED NOTES ARE ACCEPTED
AND EXCHANGED HERE". Banks should provide the facility for exchange of
notes and coins to all. However, they should ensure that the note exchange
facility is not cornered by money changers / dealers in defective notes.
Disposal of notes adjudicated at
bank branches
The full value paid notes have to be
remitted to the chest branches and there from to the concerned Issue Offices together
with the next soiled note remittance. The half value paid notes and rejected
notes, may either be remitted separately or sent by registered and insured post
as and when required.
The full value
paid notes will be treated as chest remittance while the half value paid notes
and rejected notes will be treated as notes tendered for adjudication and
processed accordingly. All chest branches are required to submit a monthly
statement to RBI showing the number of notes adjudicated during the month.
Agreement
between RBI and commercial banks
(a) The bank
branches should accept coins in exchange of notes.
(b) They should
accept coins of all denominations from any member of public without any
restriction.
(c)
They should use Coin counting machines or accept
coins by weight for large receipts.
Uncurrent Coins
The coins of
denomination of 25 paise and below have ceased to be legal tenders. All such
coins should be retained in the Small Coin Depots (SCDs) of the bank till
further instructions from RBI.
Monitoring and Control
(a)
The RMs/ ZMs of the banks may pay surprise visits to
the branches and report the position of compliance to the Head Office which
will review such reports and take prompt remedial action, wherever necessary.
(b)
Any
non-compliance shall be viewed as violation of instructions issued by RBI.
Based on RBI Master Circular dated
18/07/2016. For further clarifications please visit www.rbi.org.in ……………. Poppy
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