Banks will have to bear loss if notes found mutilated or counterfeit: RBI

MUMBAI: Banks will have to bear the loss arising from mutiliated and counterfeit notes parked with the Reserve Bank. The central bank clarified that banks may deposit the scrapped Rs 500 and Rs 1000 notes directly with its offices in their respective jurisdictions.

These notes will remain in the vaults of RBI, under the lock and key of the depositing banks till the time of examination, the RBI notification said. The amounts will be credited by the central bank to the bank's current accounts maintained with it. But, if any shortage or counterfeit note, mutilated note, is detected during detailed processing at RBI, the value of the same will be recovered from the bank concerned.

The announcement by the central bank comes at the backdrop of a sharp surge in Rs 500 and Rs 1000 currency notes surrendered with the banks in the country after the government announced that the these notes are scrapped.