What is clean note policy of SBP?

Only clean banknotes are to be issued to public and account holders whereas the soiled notes are to be deposited by these commercial banks to the field offices of SBP-BSC. For the purpose the field offices are required to ensure that the unfit notes are withdrawn from circulation for their destruction as per procedure.

Who introduced clean note policy?

the Reserve Bank of India
for improving banks’ efficiency and customer service. To overcome this problem, the Reserve Bank of India took a number of initiatives to increase the supply of clean notes on the one hand and suck out the soiled and mutilated notes from the circulation on the other, known as ‘Clean Note Policy’.

Why clean note is important?

The main objective of this Clean Note Policy is to provide good quality currency notes and coins to the citizens of our country. Also, the objective of this policy is to avoid the circulation of spoiled notes in the economy.

Can we exchange washed notes?

Refund value of these notes is, however, paid as per RBI (Note Refund) Rules. These can also be exchanged at the counters of any public sector bank branch, any currency chest branch of a private sector bank or any Issue Office of the RBI without filling any form.

What is soiled note?

Soiled notes are those which have become dirty and slightly cut. Notes which have numbers on two ends, i.e. notes in the denomination of Rs. 10 and above which are in two pieces, are also treated as soiled note. Notes which are in pieces and/or of which the essential portions are missing can also be exchanged.

What is unsorted cash?

A cash letter containing a mix of unseparated work types. A classification given to an item or cash letter based on the location of the depository institution on which the item is drawn.

What is an imperfect note?

Imperfect note: means any note, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable but does not include a mutilated note. Mutilated note: means a note of which a portion is missing or which is composed of more than two pieces.

What is mismatch note?

A variable rate note on which the changes in coupon, or refixes, are made more often and for different maturities than the interest periods. For example, an interest rate might be based on six months LIBOR but the spread may be changed each month.