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Reserve Bank of India (Note Refund) Amendment Rules, 2018

Reserve Bank of India (Note Refund) Rules, 2009  as amended by  Reserve Bank of India (Note Refund) Amendment Rules, 2018 wherein all branches of banks have been delegated powers for exchange of mutilated / defective notes.

RBI/2018-19/46
DCM (NE) No.657/08.07.18/2018-19

September 7, 2018

The Chairman and Managing Director /
The Managing Director/
The Chief Executive Officer
All Banks

Madam / Dear Sir,

Amendments to Reserve Bank of India (Note Refund) Rules, 2009

Please refer to the Reserve Bank of India (Note Refund) Rules, 2009 wherein all branches of banks have been delegated powers for exchange of mutilated / defective notes.

2. Reserve Bank of India has 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 at bank branches and RBI offices, which are smaller in size compared to the earlier series. The Reserve Bank of India (Note Refund) Amendment Rules, 2018 have since been notified in the Gazette of India on September 6, 2018 (enclosed). These rules have come into force with immediate effect.

3. 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, which is detailed in the amendments.

Yours faithfully,

(Manas Ranjan Mohanty)
Chief General Manager

Encl. As above

———————————————–

RESERVE BANK OF INDIA

NOTIFICATION

Mumbai, the 5th September, 2018

RBI/DCM (NE) No. 631/08.01.01/2018-19.—In exercise of the powers conferred by the proviso to section 28 read with sub-section (1) and clause (q) of sub-section (2) of section 58 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Board of the Reserve Bank of India with the previous sanction of the Central Government hereby makes the following rules to amend the Reserve Bank of India (Note Refund) Rules, 2009, namely:‑

1. Short title and commencements:-

(a) These rules may be called the Reserve Bank of India (Note Refund) Amendment Rules, 2018.

(b) They shall come into force on the date of their publication in the Official Gazette.

2. In the Reserve Bank of India (Note Refund) Rules, 2009, in rule 8, ‑

(a) in sub-rule (1),

(i) for the words “one rupee, two rupee, five rupee, ten rupee and twenty”, the words “less than fifty rupees”, shall be substituted;

(ii) for the “Explanation” and “Table 1”, the following shall be substituted, namely: ‑

“Explanation : For the purposes of this sub-rule, it is hereby clarified that the value of a mutilated note of less than rupees fifty denomination may be refunded in full if the undivided area of the single largest piece of the note is as specified in column (5) of the Table 1 below.

TABLE 1

Denomination Length (cm) Width (cm) Area (in cm2) Minimum area (in cm2) required for payment of full value*
(1) (2) (3) (4) (5)
1 9.7 6.3 61.11 31
2 10.7 6.3 67.41 34
5 11.7 6.3 73.71 37
10 13.7 6.3 86.31 44
10 (New MG Series) 12.3 6.3 77.49 39
20 14.7 6.3 92.61 47
20 (New MG Series) 12.9 6.3 81.27 41
*Indicated as the next complete higher square centimetre after half of the area of the notes in a particular denomination.”;

(b) in sub-rule (2), ‑

(i) in clause (i), for the figures “65”, the figures “80” shall be substituted;

(ii) in clause (ii), for the figures “65”, the figures “80” shall be substituted;

(iii) for clause (iv), the following clause shall be substituted: ‑

“if the claim of mutilated notes of rupees fifty and above denominations consist of a note composed of two pieces of the same note and the two pieces, individually have an area equal to or more than 40 percent of the total area of the note in that denomination, then the claim may be refunded for full value of the note.”;

(iv) for the “Explanation” and “Table-2”, the following shall be substituted namely: ‑

“Explanation : For the purposes of this sub-rule, it is hereby clarified that the value of a mutilated note of equal to or more than rupees fifty 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 as specified in column (5) or (6) of the Table 2 below.

TABLE 2

Denomination Length (cm) Width (cm) Area (in cm2) Minimum area (in cm2) required for payment of full value@ Minimum area (in cm2) required for payment of half value**
(1) (2) (3) (4) (5) (6)
50 14.7 7.3 107.31 86 43
50 (New MG Series) 13.5 6.6 89.10 72 36
100 15.7 7.3 114.61 92 46
100 (New MG Series) 14.2 6.6 93.72 75 38
200 14.6 6.6 96.36 78 39
500 15.0 6.6 99.00 80 40
2000 16.6 6.6 109.56 88 44
@ Rounded off to the next complete higher square centimetre of 80% of the area of the notes in a particular denomination.

** Rounded off to the next complete higher square centimetre of 40% of the area of the notes in a particular denomination.”.

B. P. KANUNGO, Dy. Governor

[ADVT.-111/4/Exty./216/18]

Note : The principal rules were published in the Gazette of India, Extraordinary, Part BI, Section 4 vide notification number 125 dated the 17th July, 2009.

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