RBI Notifies Amended Note Refund Rules

The Reserve Bank of India has released new guidelines through a gazette notification for all notes which were introduced post note ban, or notes which were introduced as part of the Mahatma Gandhi New Series. 

With this, the RBI has ended the lack of clarity over the exchange of the Rs 2000 or Rs 200 currency notes, introduced post demonetisation. Till now, there were clear rules for the value of soiled, damaged or mutilated Rs 5, 10, 20, 50, 100 and 500 notes, but the public was facing problems with the exchange of damaged Rs 200 and Rs 2000 notes as the rules for their exchange were yet to be amended. 
The Reserve Bank of India (Note Refund) Rules earlier only specified currency notes of Rs 5, Rs 10, Rs 50, Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 denomination. The Rs 2000 and Rs 200 (issued in November 2016 and September 2017 respectively) could not be governed by the old rules due to their difference in size. 
As per the new Reserve Bank of India (Note Refund) Amendment Rules, 2018, “the undivided area of the single largest piece of the note” for a damaged Rs 2000 note must be 88 square cm for a full refund, and 44 square cm for half refund. The Rs 2000 note is 109.56 square cm in dimension. For a damaged Rs 200 note, the criteria is 78 square cm for a full refund, and 39 square cm for half refund.
Know About Types of Notes:

1. Government note:  means any note issued by the Central Government or supplied by the Central Government to the Bank and issued by the Bank, provided the liability for the payment of the value in respect of such note has devolved on and been taken over by the Bank. 
2. Imperfect note: means any note, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable but does not include a mutilated note.
3. Mutilated note: means a note of which a portion is missing or which is composed of more than two pieces.
4. Mismatched Note: means a mutilated note which has been formed by joining a half note of any one note to a half note of another note.
5. Soiled Note: means a note which, has become dirty due to usage and also includes a two piece note pasted together wherein both the pieces presented belong to the same note, and form the entire note. 
Source- The Hindu Business Line

Static/Current Takeaways Important for Indian Bank PO Exam 2018- 
  • Urjit Patel- 24th Governor of RBI, Headquarters- Mumbai, Established on- 1st April 1935, in Kolkata.