Banks cannot refuse to accept faded or scribbled notes

Reserve Bank of India (RBI) has said, banks cannot refuse to accept faded notes or those with scribbles. In a Circular to banks, RBI said such banknotes have to be treated as “soiled notes” and dealt with according to the RBI’s “clean note policy”.

The circular was issued after it received complaints that many branches were not accepting banknotes, specifically of 500 and 2,000 denominations, with anything written on them or those either smudged with colour or faded due to washing.

The central bank clarified that its instructions on scribbling on notes was a directive for staffers not to write on banknotes. Bank branches have been rejecting such