RBI clean note policy: Reserve Bank of India guidelines on how to change soiled, scribbled, torn notes

Mumbai, April 30: Soiled, torn and scribbled currency notes have become a big headache for the customers, majority of whom get it from the ATMs. While in the past such notes were readily accepted by merchants and banks, post demonetisation and the introduction of new Rs 2,000 and Rs 500 currency notes, the banks are refusing to exchange these soiled, scribbled currency notes. A good number of these notes are of Rs 2,000 and Rs 500 denomination.

RBI came to the rescue of such customers and directed both the nationalised and private banks and money lenders to accept the soiled, torn and scribbled notes from the customers.

The fresh circular from the apex bank on soiled notes must have come as big relief to customers who were at the receiving end for no fault of theirs. The RBI introduced clean note policy in 1999 asking banks do not pass on the soiled, torn or scribbled notes to the customers and deposit the same with the RBI. In 2002, under the clean note policy, RBI advised banks to stop stapling currency notes. The policy also stated that banks refusing to exchange such notes will be fined Rs 10,000.