New Delhi, December 20
The Reserve Bank of India (RBI) has asked banks to stop circulating soiled currency notes after collecting those from customers — effective January 1 — under its clean note policy. This is part of the RBI’s policy to make good quality bank notes available to the public.

According to a circular dated August 14 to heads of all banks, the RBI had emphasised on the clean note policy. As scribbling on currency notes starts right from the bank cashier, the RBI had told banks to ensure that this practice gets stopped.

“It has been noticed that at certain bank branches, the practice of writing/scribbling on the body of the banknotes continues to remain in vogue. Under the present system of mechanised processing of banknotes, inscription or scribbling on any part of the banknote will render it to be classified as unfit for reissue. Accordingly, such banknotes get treated as soiled banknotes and cannot be re-circulated,” the RBI said.

According to an RBI circular, banks have been asked not to circulate soiled notes after they have been deposited by a customer. RBI officials hope that over a period of time, the number of soiled notes in the system would come down if the public also ensures that the currency notes remain clean.

The banks — after collecting the soiled notes — will not re-issue those. The notes will be deposited in currency chests and taken out of circulation or destroyed.

Banks will continue to accept soiled notes from the public and there has been no suggestion otherwise. Only the soiled notes in the system will be replaced by cleaner ones.