DCM (NE) No.G-2/08.07.18/2023-24

master_directions · 1934 · State unknown

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Parent: THE RESERVE BANK OF INDIA ACT, 1934 (edb4b0bb51aeed408edafc1e5ca731cd0dbe73f6)

Text

RBI/2023 -24/97 DCM (NE) No.G-2/08.07.18/2023-24 The Chairman/The Managing Director/ The Chief Executive Officer All Banks Madam/Dear Sir , Master Direction – Facility for Exchange of Notes and Coins In exercise of the powers conferred under Section 35A of the Banking Regulation Act, 1949, read with sections 28, 38, 39, 58(1) and 58(2)(q) of the Reserve Bank of India Act, 1934, the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified. Yours faithfully (Sanjeev Prakash) Chief General Manager Encl: As above April 03, 2023 (Updated as on May 15, 2023) Master Direction – Facility for Exchange of Notes and Coins dated April 03, 2023 1. Facility for Exchange of Notes and Coins at Bank Branches (a) All branches of banks in all parts of the country are mandated to provide following customer services, more actively and vigorously to the members of public so that there is no need for them to approach RBI Regional Offices for this purpose: (i) Issuing fresh / good quality notes and coins of all denominations, (ii) Exchanging soiled / mutilated / defective notes, 1 and (iii) Accepting coins and notes either for transactions or exchange. Considering that accepting coins packed in sachets of 100 pieces each would be more convenient for the cashiers as well as the customers, such sachets shall be kept at the counters and made available to the customers. Coins, in the denominations of ₹1 and ₹2 shall be accepted by weighment. (b) All branches shall provide the above facilities to members of public without any discrimination on all working days. The scheme of providing exchange facility by a few select currency chest branches on one of the Sundays in a month will remain unchanged. Th

Rule TOC

1 · Facility for Exchange of Notes and Coins at Bank Branches

2 · Reserve Bank of India (Note Refund) Rules, 2009 [as Amended by Reserve Bank of India (Note Refund) Amendment Rules, 2018] - Delegation of Powers

1 · Small Finance Banks (up to two years from the commencement of their banking business) and Payment Banks may exchange mutilated and defective notes at their option .

3 · Liberalized Definition of a Soiled Note

4 · Mutilated Notes – Presentation and Passing

5 · Extremely Brittle, Burnt, Charred, Stuck-Up Notes

6 · Procedure for Exchange of Soiled/ Mutilated/ Imperfect Notes

6 · 1 Exchange of Soiled Notes

6 · 1.1 Notes presented in small number: Where the number of notes presented by a person is up to 20 pieces with a maximum value of ₹5,000 per day, banks shall exchange them over the counter, free of charge.

6 · 1.2 Notes presented in bulk: Where the number of notes presented by a person exceeds 20 pieces or ₹5,000 in value per day, banks shall accept them against receipt, for value to be credited later. Banks shall levy service charges as permitted in Master Circular on Customer Service in

6 · 2 Exchange of Mutilated and Imperfect Notes

6 · 2.1 While designated branches shall continue to follow the procedure as laid down in Part III of NRR, 2009 (www.rbi.org.in→Publications→Occassional) for exchanging mutilated and imperfect notes and issue receipt for the notes presented for adjudication, non-chest branches are required to follow the procedure mentioned in the following paragraphs 6.2.2 and 6.2.3 of this Master Direction for notes presented in small numbers and in bulk respectively .

6 · 2.2 Notes presented in small number: Where the number of notes presented by a person is up to 5 pieces, non-chest branches shall normally adjudicate the notes as per the procedure laid down in Part III of NRR, 2009 and pay the exchange value over the counter. If the non-chest branches are not able to adjudicate the mutilated notes, the notes shall be received against a receipt and sent to the linked currency chest branch for adjudication. The probable date of payment shall be informed to the tenderers on the receipt itself and the same shall not exceed 30 days. Bank account details shall be obtained from the tenderers for crediting the exchange value by electronic means.

6 · 2.3 Notes presented in bulk: Where the number of notes presented by a person is more than 5 pieces but not exceeding ₹5,000 in value, the tenderer shall be advised to send such notes to nearby currency chest branch by insured post giving his / her bank account details (a/c no, branch name, IFSC, etc.) or get them exchanged thereat in person. All other persons tendering mutilated notes whose value exceeds ₹5,000 shall be advised to approach nearby currency chest branch. Currency chest branches receiving mutilated notes through insured post shall credit the exchange value to the account of sender by electronic means within 30 days of receipt of notes.

6 · 3 Grievance Redressal: Tenderers aggrieved with the service provided by the banks and a related grievance not resolved to the satisfaction of the customers, or not replied to within a period of 30 days by the bank may approach the RBI Ombudsman under 'The Reserve Bank - Integrated Ombudsman Scheme, 2021'. Complaints can be filed online on https://cms.rbi.org.in and also through the dedicated e-mail or sent in physical mode to the 'Centralised Receipt and Processing Centre' set up at Reserve Bank of India, 4th Floor, Sector 17, Chandigarh - 160017 with the bank/ postal receipts as proof for necessary action.

7 · Notes Bearing "PAY" / "PAID" / "REJECT" Stamps

8 · Notes with Slogans/ Scribbling/ Stain etc.

9 · Deliberately Cut Notes

10 · Training

11 · Display of Notice Board

12 · Disposal of Notes Adjudicated at Bank Branches

13 · Uncurrent Coins

14 · Monitoring and Control