Having difficulties in getting your mutilated notes and coins exchanged at bank branches? This may soon be a thing of the past as the RBI has come out with strict rules regarding this.
Having difficulties in getting your mutilated notes and coins exchanged at bank branches? Relax, this may soon be a thing of the past as the RBI has come out with strict rules regarding this. In a master circular on facility for exchange of notes and coins, issued recently, the apex bank has not only warned banks who refuse to accept coins and mutilated notes, but has also asked them to display on the notice board that ‘Mutilated Notes Are Accepted And Exchanged Here’.
It has said, “All designated bank branches are required to display at their branch premises, at a prominent place, a board indicating the availability of note exchange facility with the legend, ‘Mutilated Notes Are Accepted And Exchanged Here’. Banks should ensure that all their designated branches undertake note exchange business.”
The RBI said that
(a) In terms of Section 28 read with Section 58 (2) of Reserve Bank of India Act, 1934, no person is entitled as a right to recover from the Government of India or RBI the value of any lost, stolen, mutilated or imperfect currency note of the GOI or banknote. However, with a view to mitigating the hardship to the public in genuine cases, it has been provided that the RBI may, with the previous sanction of the Central Government, prescribe the circumstances in, and the conditions and limitations subject to which, the value of such currency notes or banknotes may be refunded as a matter of grace.
(b) With a view to extending the facility for the benefit and convenience of public, all currency chest branches have been delegated powers under Reserve Bank of India (Note Refund) Rules, 1975 (as amended up to 1980) for exchange of torn / mutilated / defective notes.
Soiled & Cut Notes
In order to facilitate quicker exchange facilities, the following types of soiled and cut notes should be freely exchanged by all bank branches. They should also be accepted over bank counters in payment of government dues and for credit of accounts of the public maintained with banks.
I. Single numbered notes – Re 1/-, Rs 2/- & Rs 5/-
Note presented should not be in more than two pieces. No essential feature of the note should be missing and complete number should be available in an undivided area on one of the pieces.
II. Double numbered notes – Rs 10/-, Rs 20/-, Rs 50/-, Rs 100/-, Rs 500/- & Rs 1000/-
The note presented should not be in more than two pieces. No essential feature of the note should be missing. Both the pieces should be of the same note, i.e. the complete number in an undivided area on each piece should be the same.
According to the RBI, the above types of notes will be treated as soiled notes and be kept along with soiled notes. These unfit notes shall, in no case, be issued to the public as reissuable notes but shall be deposited in currency chests for onward transmission to RBI offices as chest remittances.
Mutilated Notes – Presentation and Passing
A mutilated note is a note of which a portion is missing or which is composed of pieces. Mutilated notes may be presented either at Issue Offices of RBI or designated bank branches of commercial banks.
Extremely brittle, burnt, charred, stuck up Notes
Notes which have turned extremely brittle or badly burnt, charred or inseparably stuck up together and, therefore, cannot withstand normal handling, shall not be accepted by the branches for exchange. Instead, the holders may be advised to tender these notes to the concerned Issue Offices where they will be adjudicated under a Special Procedure.
Facility for exchange of notes and coins at bank branches
(a) All branches of banks in all parts of the country should provide the following customer services, more actively and vigorously to the members of public so that there is no need for them to approach the RBI Regional Offices only for this purpose:
(i) meeting the demands for fresh / good quality notes and coins of all denominations,
(ii) exchanging soiled notes, and
(iii) accepting coins and notes either for transactions or exchange.
(b) All the designated bank branches should provide facility for exchange of damaged / mutilated notes. The names and addresses of such bank branches are available with RBI or the respective banks. Availability of such facilities at the branches should be published for information of the public at large.
(c) None of the bank branches / staff should refuse to accept small denomination notes and / or coins tendered at their counters.
The RBI has also told banks to direct all their branches to accept coins of all denominations tendered at their counters either for exchange or for deposit in accounts. Such coins, particularly lower denominations, may be preferably accepted by weighment. However, as accepting coins packed in polythene sachets of 100 each would be more convenient for the cashiers as well as the customers, the banks may keep such sachets at the counters and make them available to the customers. A notice to this effect may be displayed suitably inside as also outside the branch premises for information of the public.
Considering that aluminium coins of 5 paise, 10 paise, 20 paise, aluminium-bronze coins of 10 paise, stainless steel coins of 10 paise, cupronickel coins of 25 paise, 50 paise and rupee one denominations are being withdrawn and remitted to the mints, customers may be requested, and not insisted, to pack each of these denominations separately and also metal-wise with 100 coins in each sachet before they are tendered at the counters. Similar arrangements may also be made for acceptance of current coins of 25 paise, 50 paise and one rupee of stainless steel and two rupees and five rupees coins of curpnickel. In case of large variations of weight, counting machines may be used.