RBI Introduces Star Series Numbering for Defective Notes
Current & verified — this is the latest version
Source: Reserve Bank of India · RBI/2005-06/375 · issued 26 Apr 2006 · ~2 min read
Quick answerRBI is replacing defectively printed banknotes with Star Series notes (Rs.10, 20, 50) featuring a * in the number panel. Packets will have 100 notes, not in serial order, with star notes at the bottom. Banks must educate staff and public.
The rule, in the simplest words
RBI is putting a star (*) on some Rs.10, Rs.20, and Rs.50 notes that were printed wrong, so they don't have to throw them away.
These star notes look the same as normal notes, but have a * between the letters and numbers on the note.
A packet of 100 notes might have some star notes at the bottom, and the band on the packet will say so.
Star notes are real money (legal tender) – everyone must accept them just like any other note.
Banks must teach their staff and customers that star notes are okay and that packets with them won't be in number order.
How it plays out — a real example
A currency-chest / cash officer in Indore opens a fresh packet of Rs.20 notes to give to a customer. She sees a star (*) on some notes at the bottom and remembers the RBI rule. She tells the customer, 'These star notes are real money, just like the others – the packet just isn't in perfect number order.' The customer smiles and accepts them without worry.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2005-06/375
DCM (Plg) No. G-48 /10.01.08/2005-06
April 26, 2006
The Chairman/ Managing Director / Chairman & Managing Director /
Chief Executive Officer
State Bank of India, Associate Banks
Nationalised Banks, Private Sector Banks, Foreign Banks
Regional Rural Banks, Urban Cooperative Banks
Dear Sir/Madam
Introduction of Star Series Numbering System
Please refer to paragraph 207 of the Annual Policy
Statement for the year 2006-07 , a copy of which is enclosed.
2. As you are aware, fresh banknote packets issued by Reserve
Bank of India at present are serially numbered. Each banknote bears a distinctive
serial number along with a prefix. Currently defectively printed banknotes in
any packet are replaced at the note printing presses with a good note bearing
the same number as the one replaced. This procedure involves additional time/cost
and manual intervention.
3. As part of the ongoing efforts to benchmark our procedures
to international best practices as also for cost effectiveness and greater operational
efficiency at note printing presses, it has been decided to adopt the STAR
series numbering system for replacement of defectively printed banknotes. The
Star series banknotes, to begin with, will be issued in Rs.10, Rs.20 and Rs.50
denominations in the Mahatma Gandhi series. The Star series banknotes will look
exactly like the existing banknotes of Rs.10, Rs.20 and Rs.50 but will have
an additional character, viz., * (star) in the number panel between the
prefix and the serial number. Consequently, some fresh banknote packets issued
by the Bank may contain some notes having a * (star) in the number panel
in the space between the prefix and the number. The bands of the packets containing
the Star series number will clearly indicate the presence of such banknotes
in the packets. Fresh note packets with star series notes will, as usual, have
100 pieces with the star series notes placed at the bottom of the packet. The
Star series banknotes will be legal tender and members of public may freely
accept and use these banknotes. The Star Series banknotes will be introduced
shortly. Your cash handling staff may be sensitized to explain, while issuing
note packets containing star series notes to the public, that the notes in such
packets will not be in serial order and that the star series notes are similar
in every other respect to normally numbered notes.
4. You are requested to educate your staff as well as customers/members
of public about the concept of star series banknotes. A
sheet containing the illustrations of the Star Series number notes is enclosed .
5. Please acknowledge receipt.
Yours faithfully
(R. Muralidharan)
General Manager-in-Charge
Currency Management - Star Series for Currency Notes
207. Currently, all fresh banknote packets issued by the Reserve Bank contain one hundred serially numbered banknotes. In a serially numbered packet, banknotes with any defect detected at the printing stage are replaced at the presses by banknotes carrying the same number in order to maintain the sequence. As part of the Reserve Bank’s ongoing efforts to benchmark its procedures against international best practices, as also for greater efficiency and cost effectiveness, it is proposed to adopt the STAR series numbering system for replacement of defectively printed banknotes. A ‘star series’ banknote will have an additional character, viz. , a star symbol * in the number panel and will be similar in every other respect to a normal bank note and would be legal tender. Any new note packet carrying a star series note will have a band on which it will be indicated that the packet contains a star note(s). The packet will contain one hundred notes, though not in serial order. To begin with, star series notes would be issued in lower denominations, i.e., Rs.10, Rs.20 and Rs.50 in the Mahatma Gandhi series. Wide publicity through issue of press advertisements is being undertaken and banks are urged to keep their branches well informed so as to guide their customers.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/375 · issued 26 Apr 2006. The plain-English explanation above is BankPulse’s own independent summary.
Update branch procedures to accept and issue star series notes without hesitation.
📜 Compliance
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.
Coordinate with RBI for any clarification or additional training materials.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (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), your first concrete step on “RBI Introduces Star Series Numbering for Defective Notes” is: “Educate cash handling staff about star series notes and their legal tender status.” (RBI issued this 26 Apr 2006).
Circular: RBI/2005-06/375 -- RBI Introduces Star Series Numbering for Defective Notes
Issued: 26 Apr 2006
Action required: Educate cash handling staff about star series notes and their legal tender status.
Action required: Inform customers that packets with star notes are not in serial order but are otherwise identical.
Action required: Update branch procedures to accept and issue star series notes without hesitation.
Action required: Coordinate with RBI for any clarification or additional training materials.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2871&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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