Banking Awareness Question Day 6

Banking Awareness Question Day 6: RBI notifies amended note refund rules

The Central Board of the Reserve Bank of India (RBI) with the previous sanction of the Centre has notified the amendments to the Reserve Bank of India (Note Refund) Rules, 2009, on September 5.

Samir Ghosh, General Secretary of All India Reserve Bank Employees Association, has requested the RBI to advise the Department of Currency Management to instruct all its offices and designated branches of banks for quick adjudication and payment of mutilated notes lying with the public, who also may be notified.

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Reserve Bank of India (Note Refund) Rules 2009

In exercise of the powers conferred by the proviso to section 28, read with clause (q) of the sub-section (1) and (2) of section 58, of the Reserve Bank of India Act, 1934 (2 of 1934) and in supersession of the Reserve Bank of India (Notes Refund) Rules, 1975, except as respect things done or omitted to be done before such supersession, the Central Board with the previous sanction of the Central Government, hereby makes the following rules for specifying the circumstances in, and the conditions and limitations subject to which, the value of lost, stolen, mutilated or imperfect note may be refunded as a matter of grace, namely:-

1. Short title, application and commencement:-

(1) These rules may be called the Reserve Bank of India (Note Refund) Rules, 2009 and further amended vide Reserve Bank of India (Note Refund) Amendment Rules, 2018.
(2) They shall apply to a note, which is a legal tender on the date of its presentation before the Bank
(3) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions:-

In these rules, unless the context otherwise requires:-

  • Act’ means the Reserve Bank of India Act, 1934 (2 of 1934).
  • Bank’ means the Reserve Bank of India constituted by section 2 of the Act.
  • Bank note‘ means any note issued by the Bank, but does not include a Government note other than one rupees note, which has been deemed to be bank note as per the Notification no. G.S.R 426, dated the 28th March 1980 issued by the Government of India, Ministry of Finance, Department of Economic Affairs.
  • Essential features‘ means the features, including security features, which are necessary for the identification of a note, namely.
     the name of the issuing authority in Hindi and/or English, that is; Bank or Government of India, as the case may be.
     the guarantee clause in Hindi and/or in English.
     the promise clause in Hindi and/or in English.
     the signature in Hindi and/or in English.
     the Ashoka Pillar emblem or Mahatma Gandhi portrait, as the case may be; and
     the water-mark of the Ashoka Pillar emblem or Mahatma Gandhi portrait, as the case may be.

Explanation: For the purposes of this clause

(A) the security features of a note, for deciding the genuineness or otherwise, include,

  • paper quality;
  • size and shape of numbers;
  • security Thread;
  • intaglio printing;
  • latent Image in the vertical band;
  • electrotype watermark (in watermark window);
  • micro lettering;
  • fluorescence (number panels and central band);
  • optically Variable Ink (in rupee five hundred and rupee one thousand denominations);
  • see-through Register, and
  • any other security feature that may be introduced by the Bank.
    (B) the essential features of a note have been enumerated with a view to helping the prescribed officer to establish the genuineness or otherwise of a mutilated note;
  • 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;
  • imperfect note‘; means any note, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable but does not include a mutilated note;
  • mutilated note‘; means a note of which a portion is missing or which is composed of more than two pieces;
  • mismatched note‘; means a mutilated note which has been formed by joining a half note of anyone note to a half note of another note:

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Explanation: For the removal of doubts, it is hereby declared that a mismatched note
can be identified on the basis of number, signature etc. and /or after examining other
security features;

  • note‘; means a Bank note or a Government note;
  • Prescribed Officer’ means any officer of the Issue Department of the Bank or any officer of an agent of the Bank/ designated by the Bank by arrangement through agreement in this behalf as authorised to receive mutilated notes for adjudication under these rules;
  • 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.

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