RBI has issued new rules for Rs 2000, Rs 500, Rs 200 notes. Details you must know
The Reserve Bank of India recently released new norms for exchanging torn Rs 2000, Rs 500, Rs 200 and other currency notes of lower denominations.
The Reserve Bank of India recently released new norms for exchanging torn Rs 2000, Rs 500, Rs 200 and other currency notes of lower denominations. The RBI had to introduce the new rules as the new notes introduced post demonetisation in 2016 were not covered under the previous rules. The major factor determining the value of a mutilated currency note is the size of the largest piece. As the new notes are smaller in size in comparision to the older notes, returning them to the Central banks didn't have any legal cover. Also, the absence of regulations was making people hesitate in accepting the new notes even with some small deformities.
Demonetisation of old Rs 1000 and Rs 500 currency notes was announced by the government in November 2016. Since then, the RBI has introduced Rs 200 and Rs 2,000 notes in the market. Smaller notes of Rs 10, Rs 20, Rs 50, Rs 100 and Rs 500 in the new Mahatma Gandhi series have also been introduced.
RBI has now amended the Reserve Bank of India (Note Refund) Rules, 2009, to allow the public to exchange torn new notes. In a release, the RBI had said, "We further inform that there is a change in the minimum area of the single largest undivided piece of the note required for payment of full value for notes of rupees fifty and above denominations..."
Following the introduction of new rules, people can exchange their mutilated or defective notes at RBI offices and designated bank branches across the country. For torn Rs 2000, Rs 500 or Rs 200 notes, people may end up with just the half of their value if they fall short of the conditions mandated by RBI. (Check the charts)
As per the new rules, a torn Rs 2000 note, can return full value if the single largest piece of the note has a minimum 88% undivided area of the original dimension of the notes. For Rs 500 and Rs 200, the single largest piece must measure 80% and 78% of the original dimension respectively.
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RBI had released the new rule on September 7, 2018.