The Hush Post: Giving a cause of worry to the customers, the banks are saying no to exchange the torn and soiled currency notes of Rs 2000 denomination quoting the rulebook saying that saying the Reserve Bank of India (RBI) does not have any provisions that require banks to exchange such currency notes.
The bank officials at cash counters are turning away people saying that they should “hold on to their torn Rs 2,000 notes till RBI comes out with a policy to exchange such notes,” a report in Business Standard said.
The Reserve Bank of India (Note Refund) Rules 2009 on mutilated notes state, “if the area of the single largest undivided piece of the mutilated note of rupees fifty, rupees one hundred, rupees five hundred and rupees one thousand note presented is at least 70, 75, 80 and 84 square centimeters, respectively, the same may be paid for full value.”
The rules further say if the mutilated notes presented to banks are less than these specifications, banks need to pay only half the value on the same, the report said.
As these rules pertain to the pre-demonetisation era, banks reportedly seem to be reluctant to apply the rules that pertained to the Rs 1,000 note to the new Rs 2,000 note, the report said.
The RBI had amended its rules regarding note change on July 3, 2017 stating: “In order to facilitate quicker exchange facilities, the definition of soiled note has been expanded. A ‘soiled note’ means a note which has become dirty due to normal wear and tear and also includes a two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note with no essential feature missing. These notes should be accepted over bank counters in payment of Government dues and for credit to accounts of the public maintained with banks.”