What changed
This is a consolidation of existing circulars into a single master circular, reaffirming that all bank branches must provide note/coin exchange services. It reiterates that currency chest branches are designated for mutilated note exchange under the RBI (Note Refund) Rules, 2009. The liberalised definition of cut notes (single/double numbered) is restated for easier exchange.
What it means for you
Banks must ensure every branch actively exchanges soiled, cut, and mutilated notes and coins without discrimination. This reduces public dependency on RBI offices and streamlines currency management. Non-compliance risks customer complaints and regulatory scrutiny, especially for currency chest branches.
What you must do
- Ensure all branches display and provide note/coin exchange services, including for soiled and cut notes.
- Train staff to accept small denomination notes and coins without refusal.
- Designate and publicise currency chest branches for mutilated note exchange under the Note Refund Rules.
- Maintain records of exchanged notes and remit unfit notes to currency chests per RBI guidelines.
Who it affects
All scheduled commercial banks with currency chest branches, Bank branch staff handling cash counters, Public seeking note/coin exchange services
What types of notes must banks exchange without charge?
Banks must exchange soiled notes, cut notes (single-numbered notes of ₹1, ₹2, and ₹5 in not more than two pieces, double-numbered notes of ₹10, ₹20, ₹50, ₹100, ₹500, and ₹1000 in not more than two pieces, with no missing essential features), and mutilated notes at designated branches.