RBI directs banks to adhere to ‘Clean Note Policy’
The Reserve Bank of India, under its Clean Note Policy, has directed banks to eliminate stapling of note packets and issue only clean currency notes to the public.
What is Clean Note Policy?
Clean Note Policy is a policy being run by the RBI with an objective to give the citizens good quality currency notes and coins, while the soiled notes are withdrawn out of circulation. Under this policy Banks have been directed the following:
- Stop stapling of note packets and instead secure note packets with paper bands.
- Sort notes into re-issuables and non-issuables.
- Issue only clean notes to public.
- Stop writing of any kind on the watermark window of bank notes.
As per RBI, on an average, one out of five paper notes in circulation (over 20%) is disposed every year after getting soiled and the number of such soiled currency bills stood at over 13 billion units during the fiscal ended March 31, 2012. RBI will launch a pilot project for plastic or polymer currency notes with an aim to enhance the shelf-life of notes.
Month: Current Affairs - May, 2013