What changed
RBI observed that banks continued stapling note packets despite prior instructions, damaging notes and reducing their lifespan. Banks also failed to sort notes and wrote on watermark windows. The directive now mandates immediate cessation of stapling, use of paper bands, sorting of notes, and a ban on any writing on watermark windows.
What it means for you
Banks must overhaul cash handling processes to eliminate stapling, which harms note quality and customer experience. Sorting notes into re-issuable and non-issuable categories ensures only clean notes reach the public, reducing soiled note circulation. Stopping writing on watermark windows preserves note integrity and aids recognition. Non-compliance could invite regulatory action under the Banking Regulation Act.
What you must do
- Immediately stop stapling all note packets; switch to paper bands for securing fresh, re-issuable, and non-issuable notes.
- Implement sorting of notes into re-issuable and non-issuable categories; issue only clean notes to customers.
- Tender soiled notes in unstapled condition to RBI via Currency Chests as inward remittances.
- Cease all writing on watermark windows of bank notes forthwith.
- Acknowledge receipt of this directive to your Regional Office.
Who it affects
All State Co-operative Banks, District Central Co-operative Banks, Currency Chests, Bank cash management and teller staff
Why is stapling note packets banned?
Stapling damages notes, reduces their lifespan, and makes it hard for customers to open packets easily. RBI mandates paper bands as a safer alternative.
What should we do with soiled notes?
Sort them as non-issuable, keep them unstapled, and tender them to RBI through Currency Chests in inward remittances.
Does this apply to all note packets?
Yes, the directive covers fresh, re-issuable, and non-issuable note packets. All must be secured with paper bands, not staples.