What changed
RBI observed that some bank branches still allow writing on banknotes, despite earlier directives from 2001 and May 2013. This circular reiterates the ban and demands immediate compliance by all dealing officers and staff.
What it means for you
Banks must enforce a zero-tolerance policy on marking notes, as any inscription now classifies notes as soiled and non-recirculable. This increases the volume of notes sent for disposal, raising operational costs for currency handling and replacement.
What you must do
- Issue clear instructions to all branch staff and cash handlers to stop writing or scribbling on banknotes immediately.
- Display notices at cash counters reminding staff and customers of the Clean Note Policy.
- Include this directive in training modules for new and existing tellers and currency chest personnel.
- Monitor compliance through surprise checks and report violations to the regional RBI office.
Who it affects
All scheduled commercial banks, Co-operative banks, Regional Rural Banks (RRBs), Bank branch staff handling cash, Currency chest operators
Why does RBI prohibit writing on banknotes?
Under mechanized processing, any writing or scribbling makes a note unfit for reissue. Such notes are treated as soiled and cannot be recirculated, wasting currency and increasing replacement costs.
Does this circular apply to all types of banks?
Yes, it applies to all banks including commercial banks, co-operative banks, and Regional Rural Banks (RRBs).
What should we do if we find staff still writing on notes?
Immediately stop the practice, retrain the staff, and consider disciplinary action. Report persistent non-compliance to your regional RBI office.