RBI announced amendments to Reserve Bank of India (Note Refund) Rules, 2009

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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.

  • The amended act has been named: The Reserve Bank of India (Note Refund) Amendment Rules, 2018.
  • It directed all branches of banks to exchange  mutilated / defective notes of various denominations.
  • This includes the denomination of Rs.10, Rs. 20, Rs. 50, Rs. 100, Rs.200, Rs. 500 and Rs.2000 of the Mahatma Gandhi (New) series.
  • These changes have been made effective from September 6, 2018.
  • It changed the sub-rule 1 and 2 of rule 8 of Reserve Bank of India (Note Refund) Rules, 2009.
  • Value of the mutilated note of less than50 rupees denomination will be refunded in full if the undivided area is of the range 31-47% of the note.
  • Value of the mutilated note greater than equals to 50 rupees denomination would have to either be refunded in:
  • Half if the undivided area of single largest piece is 40% (round off) and
  • Full if the undivided area of single largest piece is 80% (round off).