The Reserve Bank of India has issued a revised Master Direction on the Facility for Exchange of Notes and Coins, streamlining existing rules while tightening service standards for banks, including co-operative lenders.
The updated framework reinforces the responsibility of all bank branches to provide exchange services to both customers and non-customers, removing any ambiguity in access. It reiterates that branches cannot refuse coins or small denomination notes, a persistent concern in rural and semi-urban areas.
Under the norms, soiled notes up to Rs 5,000 per day must be exchanged over the counter free of cost. For bulk deposits, banks must credit the value within seven days. Mutilated notes presented in bulk are to be adjudicated within a maximum of 30 days.
The direction also calls for better monitoring of ATM cash availability, mandatory coin stock at branches, and visible display of exchange facilities. Non-compliance will attract penalties, signalling RBI’s push for uniform and citizen-friendly currency services across the banking system.
