RBI Reiterates Ban on Writing on Banknotes for UCBs
Current · Source: Reserve Bank of India · RBI/2007-2008/183 · issued 09 Jan 2002 · ~1 min read
Quick answerRBI has reminded all Primary (Urban) Co-operative Banks to stop writing on banknotes, reinforcing the Clean Note Policy. Banks must educate staff and customers against this practice.
The rule, in the simplest words
Do not write or make any marks on banknotes (paper money).
Teach bank staff and customers to keep notes clean and unmarked.
This rule is part of the Clean Note Policy (a rule to keep money neat and usable).
If you break this rule, the RBI (India's central bank) may check on your bank.
How it plays out — a real example
A co-operative bank branch officer in Indore notices a customer has written a phone number on a ₹500 note. She politely explains that writing on banknotes is not allowed under the Clean Note Policy and asks the customer to use a separate slip of paper instead. She then reminds her cash counter team to never write on notes and to display a notice in the branch advising customers against this practice.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/183
UBD.CO. BPD. (PCB). No.20 /12.05.001/2007-08
November 12 , 2007
CEOs of
All Primary (Urban) Co-operative Banks
Dear Sir /Madam,
Misuse of banknotes
Please refer to the directive issued to all urban co-operative banks under Section 35A of the Banking Regulations Act, 1949(AACS) vide UBD. No. Dir.2/13.01.00/2001-2002 dated January 9, 2002 on stapling of notes packets and misuse of banknotes.
2. It has been brought to the Bank's notice that banks, institutions and others continue to write on the banknotes. The Bank wishes to reiterate that such practices work against the Clean Note policy of the Bank. Banks are, therefore, advised to desist from writing anything whatsoever on the banknotes. Further, they may also endeavour to educate their staff, customers and members of public, in this regard.
3. Please acknowledge receipt to the Regional Office concerned.
Yours faithfully,
(A.K.Khound)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/183 · issued 09 Jan 2002. The plain-English explanation above is BankPulse’s own independent summary.
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.
📜 Compliance
Acknowledge receipt to the respective RBI Regional Office.
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 Branch Manager at a bank this circular applies to (All Primary (Urban) Co-operative Banks, Bank staff handling cash, Customers of urban co-operative banks), your first concrete step on “RBI Reiterates Ban on Writing on Banknotes for UCBs” is: “Immediately stop all writing on banknotes by staff and at counters.” (RBI issued this 09 Jan 2002).
Circular: RBI/2007-2008/183 -- RBI Reiterates Ban on Writing on Banknotes for UCBs
Issued: 09 Jan 2002
Action required: Immediately stop all writing on banknotes by staff and at counters.
Action required: Conduct internal training sessions for tellers and cash handlers on Clean Note Policy.
Action required: Display notices in branches advising customers not to write on currency notes.
Action required: Acknowledge receipt to the respective RBI Regional Office.
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=3928&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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