What changed
RBI issued a reminder on November 12, 2007 to urban co-operative banks about the existing directive under Section 35A of the Banking Regulations Act, 1949 (AACS), prohibiting writing on banknotes. The circular notes that despite earlier instructions, the practice continues and must be stopped immediately.
What it means for you
Banks must ensure no markings or writings are made on currency notes, as this damages the Clean Note Policy. Non-compliance could invite regulatory scrutiny. Lenders need to train staff and inform customers to avoid defacing notes.
What you must do
- Immediately stop all writing on banknotes by staff and at counters.
- Conduct internal training sessions for tellers and cash handlers on Clean Note Policy.
- Display notices in branches advising customers not to write on currency notes.
- Acknowledge receipt to the respective RBI Regional Office.
Who it affects
All Primary (Urban) Co-operative Banks, Bank staff handling cash, Customers of urban co-operative banks
Why is RBI prohibiting writing on banknotes?
Writing on banknotes damages the currency and goes against RBI's Clean Note policy, which aims to maintain the quality and integrity of banknotes in circulation.
Does this apply to all types of banks?
This specific circular is addressed to Primary (Urban) Co-operative Banks, but similar Clean Note Policy guidelines may apply to all banks in India, though not specified in this source.
What should we do if customers write on notes?
Banks should politely educate customers about the policy and refuse to accept heavily defaced notes, while also displaying awareness materials in branches.