What changed
This is an annual update of the Master Circular on note and coin exchange, replacing the April 2021 version. Key requirements include emphasis on active and vigorous service, mandatory coin sachets of 100 pieces at counters, and acceptance of ₹1 and ₹2 coins by weighment. The definition of soiled notes is expanded to include two-piece notes pasted together.
What it means for you
Banks must ensure all branches provide note/coin exchange as a core service, reducing public dependency on RBI offices. This increases operational burden on cash management and customer service, especially for coin handling. Non-compliance risks regulatory action, so branches need to train staff and update processes.
What you must do
- Ensure all branches stock coin sachets of 100 pieces and accept ₹1/₹2 coins by weighment.
- Train cashiers to handle soiled/mutilated notes under Note Refund Rules, 2009 (amended 2018).
- Publicize exchange services widely for information of the public at large to meet RBI's publicity mandate.
- Review Sunday exchange scheme for currency chest branches and maintain updated branch lists.
Who it affects
All scheduled commercial banks, Currency chest branches, Bank cash management teams, Retail banking operations
Are banks required to accept all coin denominations?
Yes, all coins of 50 paise, ₹1, ₹2, ₹5, ₹10, and ₹20 remain legal tender. Branches must accept them for transactions or exchange, and cannot refuse small denomination notes or coins.
What is the new rule for soiled notes?
The definition now includes a two-piece note pasted together where both pieces are present. This expands the scope of notes eligible for free exchange at bank branches under delegated powers.
Do banks need to provide exchange services on Sundays?
The existing scheme for select currency chest branches to offer exchange on one Sunday per month remains unchanged. Banks must maintain and share the list of such branches.