RBI asks banks to exchange up to 20 soiled notes with max value Rs 5000 free of cost

In a bid to improve customer service, RBI has asked banks to exchange up to 20 soiled currency notes with a maximum value of Rs 5,000 over the counter free of charge.

However, if the number of notes to be exchanged is more than 20, banks can levy service charge.

The facility of exchanging mutilated or imperfect notes is available at designated bank branches. In case notes are presented in bulk (the number exceeds 20 pieces or Rs 5,000 in value per day), banks will accept them, against a receipt, for the value to be credited later.

If the tendered value is above Rs 50,000, banks are expected to take the usual precautions, RBI said. The RBI also laid down norms for non-chest branches for exchanging soiled notes.

Where the number of notes presented by a person is up to five pieces per day, non-chest branches should adjudicate the notes as per the procedure and pay the exchange value over the counter.