What changed
RBI adopted the Star Series numbering system to replace defectively printed banknotes, starting with Rs.10, Rs.20, and Rs.50 denominations in the Mahatma Gandhi series. These notes look identical to existing notes but have a * (star) between the prefix and serial number. Fresh note packets will contain 100 pieces, with star notes placed at the bottom and clearly indicated on the band.
What it means for you
Banks must train cash handling staff to explain that star series notes are legal tender and packets may not be in serial order. This change reduces time and cost at printing presses by eliminating manual replacement of defective notes. Banks should proactively inform customers to avoid confusion or rejection of star notes.
What you must do
- Educate cash handling staff about star series notes and their legal tender status.
- Inform customers that packets with star notes are not in serial order but are otherwise identical.
- Update branch procedures to accept and issue star series notes without hesitation.
- Coordinate with RBI for any clarification or additional training materials.
Who it affects
State Bank of India and associate banks, Nationalised banks, Private sector banks, Foreign banks, Regional Rural Banks, Urban Cooperative Banks, Cash handling staff at all branches, Bank customers and public
What is a Star Series banknote?
It is a replacement for defectively printed notes, identical to regular notes but with a * (star) in the number panel between the prefix and serial number. It is legal tender.
Which denominations will have Star Series notes initially?
Rs.10, Rs.20, and Rs.50 denominations in the Mahatma Gandhi series will be issued first.
How will banks know if a packet contains Star Series notes?
The band of the packet will clearly indicate the presence of star notes, which will be placed at the bottom of the 100-note packet.