RBI / 2004-05 /372
DCM(NPD) No. 402 /09.39.00/2004-05
February 22, 2005
The Chairman / Managing Director,
All Banks having currency chests.
Clean Note Policy - Sorting of banknotes
As you are aware in order to achieve the objectives
of the Clean Note Policy and with the intention of salvaging re-issuable banknotes,
banks had been issued directives vide DBOD
No. Dir. 42 /13.03.00/2001-02 dated November 7, 2001, instructing, inter
alia, to sort banknotes into issuable and non-issuable, and issue only clean
notes to public and to remit back the soiled notes in unstapled condition to
the Reserve Bank of India through currency chests. However, it has been our
experience that quite a few currency chests do not resort to proper sorting
of banknotes before they remit soiled banknotes to the Bank.
2 It has, therefore, been decided that if the
remittances received from the currency chests are found to be not sorted properly
into issuable and non-issuable and if the reissuable notes are found to be in
excess of 10% in the remittance, the entire remittance is liable to be returned
to the bank/s at their costs besides debiting the amount thereof to the account/s
of the bank/s maintained with the Reserve Bank of India. You may, therefore,
please caution your currency chest branches to ensure that the notes are sorted
into issuable and non-issuable before they send the soiled notes to the Bank.
Please acknowledge the receipt of this letter.
Chief General Manager.