January 31, 2007
All State Co-operative Banks/
District Central Co-operative Banks
Dear Sir
Clean Note Policy - Stapling of Note Packets
It is observed that despite instructions issued by the Reserve
bank of India, banks still continue to follow the practice of stapling of note
packets. This practice, apart from damaging notes, reduces the life span of
notes and renders it difficult for customers to open note packets easily.
2. It is also observed that banks do not sort notes into re-issuables
and non-issuables and issue soiled notes to the public. Banks also continue
to follow the practice of writing number of note pieces in loose packets on
watermark window of notes, which disfigures the water mark impression and renders
it difficult for easy recognition.
3. It has, therefore, been decided that hereinafter and with immediate effect
:
a. banks should do away with stapling of any note packets and
instead secure them with paper bands,
b. banks should sort notes into re-issuables and non-issuables, and issue only
clean notes to public. Soiled notes in unstapled condition may be tendered at
the Reserve Bank in inward remittances through Currency Chests; and,
c. banks should forthwith stop writing of any kind on watermark window of bank
notes.
4. Accordingly, our Directive RPCD CO.RF.Dir. No.44/07.38.03/2006-07
dated January 31, 2007 is enclosed.
5. Please acknowledge receipt to the Regional Office concerned.
Yours faithfully,
(C.S.Murthy)
Chief General Manager-in-Charge
RPCD.CO.RF.Dir. No.44/07.38.03/2006-07
January 31, 2007
Clean Note Policy - Stapling of Note Packets
In exercise of the powers conferred under Section 35A read
with Section 56 of the Banking Regulation Act, 1949, the Reserve Bank of India
being satisfied that it is necessary and expedient in public interest so to
do, hereby directs that hereinafter and with immediate effect;
i. Banks shall do away with stapling of fresh / re-issuable / non-issuable note
packets and instead secure them with paper bands.
ii. Banks shall sort notes into issuables and non-issuables,
and issue only clean notes to public. Banks shall tender soiled notes in unstapled
condition to Reserve Bank of India in inward remittances through Currency Chests.
iii. Banks shall forthwith stop writing of any kind on watermark window of bank
notes.
(V.S.Das)
Executive Director