- Clean note policy
- RBI and Clean Note Policy
- Soiled notes
- Mutilated notes
Clean note policy
The Governor declared the Clean Note Policy in 1999 which means asking banks do not pass on the soiled, torn, or scribbled notes to the customers and deposit the same with the RBI, and on implementation, many steps were taken for augmenting the provision of currency notes and coins.
RBI and Clean Note Policy
Shri Vepa Kamesam, Deputy Governor, depository financial institution of Asian nation, exhorted the banks to implement the Reserve Bank’s directions issued from Nov 2001 to do stapling of note packets and by using paper/polythene bands the lifetime of the currency notes is enhanced. By gathering of Chief Executives of public sector banks and different banks with currency chests in the metropolis, the Deputy Governor debated the matters connected with implementing the depository financial institution of India’s Clean Note Policy. The main aim of Reserve Bank’s Clean Note Policy is to allow the smart quality currency notes and coins of the voters as the squalid notes which are withdrawn out of circulation. The smart quality clean notes are issued to the general public by the depository financial institution also refrain from the squalid notes received by them by putting in high-speed Currency Verification and process Systems (CVPS) machines.
The currency note is not in priority to invite by the members of the public and banks were planned to implement unrestricted facilities for the exchange of squalid and mutilated notes. Smart quality notes and coins in exchange for squalid and mutilated notes are supplied to the non-customers as per the depository financial institution directions through currency chest branches of the bank’s Complaints, however, still, be received during this regard from the general public and trade bodies that these directions haven’t been given full impact.
Some complaints of restrictive practices were conjointly being received in step with that some currency chest branches within the rural and semi-urban areas don’t settle for lower denomination notes. To mitigate the position, the depository financial institution has given specific monthly targets for the distribution of coins to those currency chests. The depository financial institution monitors these targets from the feedback reports. more in an experimental basis, the depository financial institution had requested banks between Sept and Nov this year to open one currency chest branch on one Sunday in an exceedingly month at hand-picked centers to completely give currency exchange and distribution of little coins and suck out the dangerous notes. It has, therefore, been determined that banks ought to run this theme permanently with sincere participation. The selection of the center and therefore the choice of the Sunday within the month ought to be left to the individual bank to make your mind up.
The Deputy Governor emphasized coordination is important between chest branches and non-chest branches and it had been the time that the currency chest branches conjointly mechanized their operations by putting in smaller tabletop versions additionally to band machines so members of the public receive smart staple-free notes and conjointly the depository financial institution also receives staple-free squalid notes prepared for process and destruction. He conjointly declared that the Regional administrators of the depository financial institution may well be contacted for correct coordination of remittances of notes and coins. He hoped that the banks can extend full cooperation to the depository financial institution in the delivery of its Clean Note Policy and it’s going to not need to think about any regulative intervention for this purpose.
RBI treats slightly cut, notes in 2 items as squalid notes. However, the amount on the notes ought to be intact and not have versed the number panels. All such notes will be changed in any public sector bank or personal sector bank. The purchasers needn’t fill any type for this exchange, in step with info on the run batted in the website.
Excessively squalid notes, burnt currency notes will solely be changed at run batted offices and customers ought to approach the bank offices for exchange of such notes.
The Currency notes should not have essential parts like the name of supplying authority, signature, guarantee, and promise clause as mutilated notes as per RBI rule. Such notes can even be changed at any public or personal sector banks while not filling any forms however the refund worth of such notes is paid as per run batted in Note Refund rules.
RBI conjointly offers Triple Lock Receptacle (TLR) covers the possibility for exchange of mutilated currency notes. This facility permits the purchasers to submit the mutilated notes in TLR covers with details like name, address, denomination of notes, etc. The exchange worth of the mutilated notes is paid to the client through a banker’s draft or pay the order. Mutilated notes for exchange can even be sent to run batted in offices by registered/insured post.