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RBI Bans Writing on Banknotes Under Clean Note Policy

Current · Source: Reserve Bank of India · RBI/2013-14/183 · issued 14 Aug 2013 · ~1 min read
Quick answerRBI has ordered all banks to immediately stop staff from writing or scribbling on banknotes. Such markings render notes unfit for reuse under mechanized processing, wasting currency and undermining the Clean Note Policy.
The rule, in the simplest words
How it plays out — a real example

A currency-chest / cash officer in Indore, Priya, used to write the loan account number on ₹500 notes with a pen to track them. After reading this RBI circular, she immediately stopped and told her team to use separate slips instead. Now, all notes stay clean and can be reused, saving the bank money on replacements.

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

Who it affects

All scheduled commercial banks, Co-operative banks, Regional Rural Banks (RRBs), Bank branch staff handling cash, Currency chest operators

❓ Common questions

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.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/183 DCM (NPD) No. G-11 /09.39.000 /2013-14 August 14, 2013 The Chairman and Managing Director / The Chief Executive Officer All Banks (including Co-operative banks and RRBs) Madam / Dear Sir, Clean Note Policy Please refer Bank’s directive vide DBOD No. Dir. BC. 43/13.03.00/2001-02 dated November 07, 2001 and circular DCM (NPD) No. 5133/09.39.000/2012-13 dated May 10, 2013 on the captioned subject. 2. It has been noticed that at certain branches of banks, the practice of writing/scribbling on the body of the banknotes continues to remain in vogue. Under the present system of mechanized processing of banknotes, inscription or scribbling on any part of the banknote would render it to be classified as unfit for reissue. Accordingly, such banknotes get treated as soiled banknotes and cannot be recirculated. 3. You are advised to issue suitable instructions to all dealing officers and staff to forthwith stop writing / scribbling of any kind on any part of the banknote to ensure achievement of the objectives of clean note policy. 4. Please acknowledge receipt. Yours faithfully, (B. P. Vijayendra) Principal Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/183 · issued 14 Aug 2013. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Who does what — compliance checklist
🏦 Branch Manager
  • 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.
📜 Compliance
  • Monitor compliance through surprise checks and report violations to the regional RBI 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 scheduled commercial banks, Co-operative banks, Regional Rural Banks (RRBs), Bank branch staff handling cash, Currency chest operators), your first concrete step on “RBI Bans Writing on Banknotes Under Clean Note Policy” is: “Issue clear instructions to all branch staff and cash handlers to stop writing or scribbling on banknotes immediately.” (RBI issued this 14 Aug 2013).

  1. Circular: RBI/2013-14/183 -- RBI Bans Writing on Banknotes Under Clean Note Policy
  2. Issued: 14 Aug 2013
  3. Action required: Issue clear instructions to all branch staff and cash handlers to stop writing or scribbling on banknotes immediately.
  4. Action required: Display notices at cash counters reminding staff and customers of the Clean Note Policy.
  5. Action required: Include this directive in training modules for new and existing tellers and currency chest personnel.
  6. Action required: Monitor compliance through surprise checks and report violations to the regional RBI office.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. 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

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BankPulse Compliance Evidence Pack — generated 03 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=8308&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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