Reserve Bank Of India's Clean Note Policy

Reserve Bank Of India's Clean Note Policy

Salient Features of Clean Note Policy by RBI:

•  Do away with stapling of note packets
• Introduce banding the packets with paper/polythene bands so that the life of the currency notes is increased.
• The objective of the Reserve Bank’s Clean Note Policy is to give the citizens good quality currency notes and coins while the soiled notes are withdrawn out of circulation.
•  RBI instructed the banks to issue only good quality clean notes to the public
• Banks to refrain from recycling the soiled notes received by them over their counters.
• The members of public were urged not to write on the currency notes
• Banks were instructed to provide unrestricted facility for exchange of soiled and mutilated notes.
• As per the Reserve Bank instructions, currency chest branches of the banks must offer, even to non-customers, good quality notes and coins in exchange for soiled and mutilated notes.
• Reserve Bank has given specific monthly targets for distribution of coins to currency chest branches in rural and semi urban areas currency chests. The Reserve Bank monitors these targets from the feedback reports.
• Banks should run open one currency chest branch on one Sunday in a month at selected centres to exclusively provide currency exchange and distribution of small coins and suck out the bad notes.

 Source:BankersClub