New Delhi: The Reserve Bank of India (RBI) has announced new norms for the exchange of mutilated currency notes following the introduction of Rs 2,000, Rs 200 and other currencies of lower denomination.


COMMERCIAL BREAK
SCROLL TO CONTINUE READING

As per the new norms, the general public can now exchange mutilated or defective currency notes at the designated bank branches and RBI offices across the country for either full or half value based on the condition of the currency.


According to the new RBI guidelines, the value of a mutilated note of Rs 2000 denomination may be refunded in full or half, as the case may be if the minimum undivided area of the single largest piece of the note is 88 square cm for a full refund and 44 square cm for half refund.



It is to be noted that 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.


If claim of mutilated notes of Rs 50 and above denominations consist of a note composed of 2 pieces of same note and the 2 pieces, individually have an area equal to or more than 40% of total area of note in that denomination, the claim may be refunded for full value of the note,'' the new RBI notification said.



The central bank while making changes to the Reserve Bank of India (Note Refund) Rules, 2009 said it has been done to allow people to exchange mutilated notes in Mahatma Gandhi (New) series that are small in size in comparison to the previous series. 


''RBI on September 6 made amendments to the Reserve Bank of India (Note Refund) Rules, 2009, to enable the public to exchange mutilated notes in Mahatma Gandhi (New) series, which are smaller in size compared to the earlier series,'' the central bank said in the notification.



The new currency exchange norms have come into force with immediate effect.


Also, the RBI said, "We further inform that there is a change in the minimum area of the single largest undivided piece of the note required for payment of full value for notes of rupees fifty and above denominations..."


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.


To counter this problem, the RBI has come out with refreshed rules to include the new notes launched post-demonetisation.


Post demonetisation in November 2016, the Reserve Bank introduced Rs 200 and Rs 2,000 notes.


Besides, it came out with smaller notes of Rs10, Rs 20, Rs 50, Rs100 and Rs 500.