"COINS AND NOTES"

1. Facility for exchange of notes and coins at bank branches

All the designated bank branches provide facility for exchange of damaged/mutilated notes. All branches of banks in all parts of the country provide the following customer services, more actively and vigorously to the members of public so that there is no need for them to approach the RBI Regional Offices only for this purpose:

(i) meeting the demands for fresh / good quality notes and coins of all denominations,
(ii) exchanging soiled notes, and
(iii) accepting coins and notes either for transactions or exchange.

None of the bank branches / staff can refuse to accept small denomination notes and / or coins tendered at their counters.

A mutilated note is a note of which a portion is missing or which is composed of more than two pieces. Mutilated notes may be presented either at designated bank branches of commercial banks.

2. Reserve Bank of India (Note Refund) Rules, 2009 Delegation of full powers

(a) In terms of Section 28 read with Section 58 (2) of Reserve Bank of India Act, 1934, no person is entitled as a right to recover from the Government of India or RBI the value of any lost, stolen, mutilated or imperfect currency note of the GOI or banknote. However, with a view to mitigating the hardship to the public in genuine cases, RBI may, with the previous sanction of the Central Government, prescribe the conditions and limitations subject to which, the value of such currency notes or banknotes may be refunded as a matter of grace.

(b) With a view to extending the facility for the benefit and convenience of public, designated branches of banks have been delegated powers under Reserve Bank of India (Note Refund) Rules, 2009 for exchange of torn / mutilated / defective notes free of cost.

3. Liberalised definition of Cut Notes

 In order to facilitate quicker exchange facilities, the following types of soiled and cut notes are freely exchanged by all bank branches. They are also accepted over bank counters in payment of Government dues and for credit of accounts of the public maintained with banks.

a. Single numbered notes – Re.1/-, Rs.2/- & Rs.5/-

Note presented should not be in more than two pieces. No essential feature of the note should be missing. Both the pieces should be of the same note.

II. Double numbered notes–Rs.10/-,Rs.20/-,Rs.50/-,Rs.100/-,Rs.500/-& Rs.1000/-

The note presented should not be in more than two pieces. No essential feature of the note should be missing. Both the pieces should be of the same note. The above types of notes will be treated as soiled notes and be kept along with soiled notes.

4. Extremely brittle, burnt, charred, stuck up Notes

Notes which have turned extremely brittle or badly burnt, charred or inseparably stuck up together and, therefore, cannot withstand normal handling, will not be accepted by the branches for exchange. Instead, the holders should tender these notes to the concerned Issue Office where they will be adjudicated under a Special Procedure.

5. Notes bearing slogans / political messages, etc.

Any note with slogans and message of a political nature written across it ceases to be a legal tender and the claim on such a note will be rejected under Rule 6(3)(iii) of Reserve Bank of India (Note Refund) Rules, 2009 Similarly, notes which are disfigured may also be rejected under Rule 6(3)(iii) of Reserve Bank of India (Note Refund) Rules, 2009

6. Display of Notice Board

All designated bank branches are required to display at their branch premises, at a prominent place, a board indicating the availability of note exchange facility with the legend, "MUTILATED NOTES ARE ACCEPTED AND EXCHANGED HERE". The note exchange facility should not be cornered by private money changers / professional dealers in defective notes by the bank branches.

7. Withdrawn Coins

Aluminium coins of 5 paise, 10 paise, 20 paise, aluminum-bronze coins of 10 paise, stainless steel coins of 10 paise, cupronickel coins of 25 paise, 50 paise and rupee one denominations are being withdrawn and remitted to the mints, people may pack each of these denominations separately and also metal-wise with 100 coins in each sachet before they are tendered at the counters.