What changed
This 2013 Master Circular consolidates and updates prior instructions (2012) on note/coin exchange. It liberalizes the definition of 'soiled note' to include two-piece notes pasted together from the same note with no missing features. It reiterates that all branches must provide exchange services without discrimination and publicize them.
What it means for you
Banks must ensure every branch offers fresh notes, coin exchange, and accepts soiled/mutilated notes on all working days. The liberalized soiled note definition reduces rejection at counters, easing customer complaints. Banks cannot refuse small denomination notes or coins, and must route brittle/burnt notes to RBI Issue Offices under special procedures.
What you must do
- Train all branch staff to accept soiled notes (including two-piece pasted notes) and mutilated notes per RBI rules.
- Display signage and use local media to publicize exchange facilities at every branch.
- Ensure no branch refuses small denomination notes or coins tendered by the public.
- Advise holders of extremely brittle/burnt notes to approach RBI Issue Offices; do not accept such notes at branches.
- Deposit soiled notes in currency chests for RBI processing; never reissue them to the public.
Who it affects
All scheduled commercial banks, Currency chest branches, Bank branch staff handling cash, Retail customers and public
What is the new definition of a soiled note under this circular?
A soiled note includes notes dirty from normal wear and tear, and also a two-piece note pasted together where both pieces belong to the same note and form the entire note with no essential feature missing.
Can a bank refuse to accept small denomination notes or coins?
No. The circular explicitly states that no bank branch should refuse to accept small denomination notes and/or coins tendered at their counters.
What should a bank do if a customer brings extremely brittle or burnt notes?
Branches must not accept such notes. Instead, advise the customer to tender them to the concerned RBI Issue Office, where they will be adjudicated under a Special Procedure.