My bank refuses to accept some soiled and torn notes. Some of them have full or partial numbers from one side cut out. What are the RBI guidelines and is there an official circular on this?
Anand Shah, Baroda
Normally banks are required to accept soiled notes and replace them under the RBI refund rules. Banks are required to prominently display that they would accept and replace soiled notes, and any non-compliance with the circular would amount to violation of RBI regulations in this regard. However, the regulations specify the kind of mutilation of notes that is eligible for replacement. You need to examine the contents of the circular along with the actual condition of the note. One of the aspects of the regulation is for the number to be complete. That could have been the reason why the bank refused to accept the soiled note from you.
