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Recent Development in world banks, Essays (university) of Banking and Finance

Ranchi UniversityBanking and Finance

Developments after 2008 crisis

Typology: Essays (university)

2017/2018

Uploaded on 04/24/2018

Pratul
Pratul 🇮🇳

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Ÿ¸ºÍ¸ œÏ¤¸¿š¸ ¢¨¸ž¸¸Š¸, ˆ½¿ÅÍú¡¸ ˆÅ¸¡¸¸Ä¥¸¡¸, ¸¸¾˜¸ú Ÿ¸¿¢{¸¥¸, ‚Ÿ¸£ ž¸¨¸›¸, ¬¸£ œ¸ú.‡Ÿ¸. £¸½”, œ¸¸½.¤¸¸.¬¸¿.1379, Ÿ¸º¿¤¸ƒÄ - 400 001 (ž¸¸£÷¸ )
ûŸ½›¸ : + 91-22-2266 1644 û¾ÅƬ¸ : + 91-22-2266 2442 ƒÄ-Ÿ¸½¥¸ :[email protected]
Department of Currency Management, Central Office, 4th Floor, Amar Building, Sir P.M.Road, P.B.No.1379, Mumbai- 400 001(India)
Tel: + 91-22-2266 1644 Fax : + 91 -22-2267 0570 E-mail : [email protected]
(¢í¿™ú ‚¸¬¸¸›¸ í¾, ƒ¬¸ˆÅ¸ œÏ¡¸¸½Š¸ ¤¸õ¸ƒ‡ )
RBI/2017-18/3
DCM(NE)No.G - 1/08.07.18/2017-18 July 03, 2017
The Chairman and Managing Director /
The Managing Director/
The Chief Executive Officer
All Banks
Madam / Dear Sir
Master Circular – Facility for Exchange of Notes and Coins
Please refer to the Master Circular DCM(NE)No. G-1/08.07.18/2016-17 dated July
18, 2016 containing instructions on the facility for exchange of notes and coins. A
revised version of Master Circular on the subject is annexed for your information and
necessary action. This Master Circular is placed in our website www.rbi.org.in.
Yours faithfully
(P. Vijaya Kumar)
Chief General Manager
Encl. As above
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Ÿ¸ºÍ¸ œÏ¤¸¿š¸ ¢¨¸ž¸¸Š¸, ˆ½¿ÅÍú¡¸ ˆÅ¸¡¸¸Ä¥¸¡¸, ¸¸¾˜¸ú Ÿ¸¿¢{¸¥¸, ‚Ÿ¸£ ž¸¨¸›¸, ¬¸£ œ¸ú.‡Ÿ¸. £¸½”, œ¸¸½.¤¸¸.¬¸¿.1379, Ÿ¸º¿¤¸ƒÄ - 400 001 (ž¸¸£÷¸ ) ûŸ½›¸ : + 91-22-2266 1644 û¾ÅƬ¸ : + 91-22-2266 2442 ƒÄ-Ÿ¸½¥¸ :[email protected] Department of Currency Management, Central Office, 4th Floor, Amar Building, Sir P.M.Road, P.B.No.1379, Mumbai- 400 001(India) Tel: + 91-22-2266 1644 Fax : + 91 -22-2267 0570 E-mail : [email protected] (¢í¿™ú ‚¸¬¸¸›¸ í¾, ƒ¬¸ˆÅ¸ œÏ¡¸¸½Š¸ ¤¸õ¸ƒ‡ )

RBI/2017-18/

DCM(NE)No.G - 1/08.07.18/2017-18 July 03, 2017

The Chairman and Managing Director /

The Managing Director/

The Chief Executive Officer

All Banks

Madam / Dear Sir

Master Circular – Facility for Exchange of Notes and Coins

Please refer to the Master Circular DCM(NE)No. G-1/08.07.18/2016-17 dated July

18, 2016 containing instructions on the facility for exchange of notes and coins. A

revised version of Master Circular on the subject is annexed for your information and

necessary action. This Master Circular is placed in our website www.rbi.org.in.

Yours faithfully

(P. Vijaya Kumar)

Chief General Manager

Encl. As above

ANNEX

Master Circular – Facility for Exchange of Notes and Coins dated July 03, 2017

1. Facility for exchange of notes and coins at bank branches

(a) All branches of banks in all parts of the country are mandated to provide the

following customer services, more actively and vigorously to the members of public

so that there is no need for them to approach the RBI Regional Offices for this

purpose:

(i) Issuing fresh / good quality notes and coins of all denominations on demand,

(ii) Exchanging soiled / mutilated / defective notes, and

(iii) Accepting coins and notes either for transactions or exchange. In terms of

section 6 (1) of The Coinage Act, 2011, the coins issued under the authority of

section 4 shall be a legal tender in payment or on account, in case of :-

a) a coin of any denomination not lower than one rupee, for any sum not

exceeding one thousand rupees;

b) a half-rupee coin, for any sum not exceeding ten rupees:

Provided that the coin has not been defaced and has not lost weight so as to be less

than such weight as may be prescribed in its case.

(b) All branches should provide the above facilities to members of public without any

discrimination on all working days. The scheme of providing exchange facility by a

few select currency chest branches on one of the Sundays in a month will remain

unchanged. The names and addresses of such bank branches should be available

with the respective banks.

(c) The availability of the above-mentioned facilities at the bank branches should be

given wide publicity for information of the public at large.

(d) None of the bank branches should refuse to accept small denomination notes

and / or coins tendered at their counters.

2. Reserve Bank of India (Note Refund) Rules, 2009 - Delegation of powers

(a) In terms of Section 28 read with Section 58 (2) of Reserve Bank of India Act,

1934, no person is entitled as a right to recover from the Government of India or RBI

the value of any lost, stolen, mutilated or imperfect currency note of the GOI or

banknote. However, with a view to mitigating the hardship to the public in genuine

cases, it has been provided that the RBI may, with the previous sanction of the

Central Government, prescribe the circumstances in, and the conditions and

limitations subject to which, the value of such currency notes or banknotes may be

refunded as a matter of grace.

6.2 Exchange of mutilated and imperfect notes

6.2.1 While designated branches may continue to follow the procedure as laid down

in Part III of NRR, 2009 (www.rbi.org.in →Publications→Occassional) for exchanging

mutilated and imperfect notes and issue receipt for the notes presented for

adjudication, non-chest branches are required to follow the following procedure for

notes presented in small numbers and in bulk.

6.2.2 Notes presented in small number : Where the number of notes presented by a

person is up to 5 pieces, non-chest branches should normally adjudicate the notes

as per the procedure laid down in Part III of NRR, 2009 and pay the exchange value

over the counter. If the non-chest branches are not able to adjudicate the mutilated

notes, the notes may be received against a receipt and sent to the linked currency

chest branch for adjudication. The probable date of payment should be informed to

the tenderers on the receipt itself and the same should not exceed 30 days. Bank

account details should be obtained from the tenderers for crediting the exchange

value by electronic means.

6.2.3 Notes presented in bulk: Where the number of notes presented by a person is

more than 5 pieces not exceeding ` 5000 in value, should be advised to send such

notes to nearby currency chest branch by insured post giving his / her bank account

details (a/c no, branch name, IFSC, etc.) or get them exchanged thereat in person.

All other persons tendering mutilated notes whose value exceeds ` 5000 should be

advised to approach nearby currency chest branch. Currency chest branches

receiving mutilated notes through insured post should credit the exchange value to

the account of sender by electronic means within 30 days of receipt of notes.

6.3 Tenderers aggrieved with the service provided by the banks in this regard may

approach Banking Ombudsman concerned, following the procedure as laid under

Banking Ombudsman Scheme, 2006 with the bank /postal receipts as proof for

necessary action.

7. Notes bearing "PAY"/"PAID" "REJECT" stamps

(a) Every Officer-in-charge of the branch i.e. the Branch Manager and every Officer-

in-charge of the Accounts or Cash Wing of the Branch shall act as 'Prescribed

Officer' in each branch to adjudicate the notes received at the branch for exchange in

accordance with Reserve Bank of India (Note Refund) Rules, 2009. After

adjudicating mutilated notes, the Prescribed Officer is required to record his order by

subscribing his initials to the dated 'PAY'/ 'PAID'/ 'REJECT' stamp. The 'PAY' /'PAID'

& 'REJECT' stamps should also carry the name of the bank and branch concerned

and held under the custody of the 'Prescribed Officer' to avoid misuse.

(b) Mutilated / defective notes bearing 'PAY'/'PAID' (or 'REJECT') stamp of any RBI

Issue Office or any bank branch, if presented for payment again at any of the bank

branches should be rejected under Rule 6(2) of Reserve Bank of India (Note Refund)

Rules, 2009 and the tenderer should be advised that the value of such note/s cannot

be paid since the same has already been paid as is evident from the PAY/PAID

stamps affixed on it/them. All bank branches have instructions not to issue notes

bearing PAY/PAID stamps to the public even through oversight. The branches

should caution their customers not to accept such notes from any bank or anybody

else.

8. Notes bearing slogans / political messages, etc.

Any note with slogans and message of a political nature written across it ceases to

be a legal tender and the claim on such a note will be rejected under Rule 6(3) (iii) of

Reserve Bank of India (Note Refund) Rules, 2009. Similarly, notes which are

disfigured may also be rejected under Rule 6(3) (ii) of Reserve Bank of India (Note

Refund) Rules, 2009

9. Deliberately cut notes

The notes, which are found to be deliberately cut, torn, altered or tampered with, if

presented for payment of exchange value should be rejected under Rule 6(3)(ii) of

the Reserve Bank of India (Note Refund) Rules, 2009. Although it is not possible to

precisely define deliberately cut notes, a close look at such notes will clearly reveal

any deliberate fraudulent intention, as the manner in which such notes are mutilated

will follow a broad uniformity in the shape/location of missing portions of the notes,

especially when the notes are tendered in large numbers. The details of the case

such as the name of the tenderer, the number of notes tendered and their

denominations should be reported thereafter to the Deputy/General Manager, Issue

Department, under whose jurisdiction the branch falls. The matter should also be

reported to local police in case a large number of such notes are tendered.

10. Training

Our Issue Offices conduct training programmes for 'Prescribed Officers' of bank

branches on a priority basis. As the training programmes are intended to provide

knowledge and in still confidence in the Prescribed Officers in the process of

adjudication of defective notes, it is imperative that the Prescribed Officers of the

branches are deputed for such programmes.

11. Display of Notice Board

All bank branches are required to display at their branch premises, at a prominent

place, a board indicating the availability of note exchange facility with the legend,

"SOILED/MUTILATED NOTES ARE ACCEPTED AND EXCHANGED HERE" for

information of general public. Banks should ensure that all their branches provide

facility for exchange of notes and coins not only to their customers but also others.

However, they should ensure that the note exchange facility is not cornered by

money changers / dealers in defective notes.

12. Disposal of notes adjudicated at bank branches

Regarding audit of the notes adjudicated by bank branches, the full value paid notes

have to be remitted by all branches to the chest branches with which they have been

linked and therefrom to the Issue Offices concerned together with the next soiled

Master Circular – Facility for Exchange of Notes and Coins dated July 03, 2017

List of circulars / notifications consolidated by the Master Circular

Sr. No. Circular / Notification No. Date Subject

  1. DCM(NE)No.120/08.07.18/ 2016 - 17 14.0 7 .2016 Facility for Exchange of Soiled/ Mutilated/ Imperfect Notes
  2. DCM(NE)No.3498/08.07. 8/ 2012 - 13 28.01.2013 Facility for exchange of notes and coins
  3. DCM (Plg). No. 6983/10.03.03/2010- 11 28.6.2011 Call in from circulation coins of the denomination of 25 paise and below
  4. DCM (Plg). No. 6476/10.03.03/2010- 11 31.5.2011 Call in from circulation coins of the denomination of 25 paise and below- complaints reading non-acceptance of
  5. DCM (Plg). No. 4459/10.03.03/2010- 11 09.2.2011 Call in from circulation coins of the denomination of 25 paise and below.
  6. DCM (Plg). No. 4137/10.03.03/2010- 11 25.1.2011 Call in from circulation coins of the denomination of 25 paise and below.
  7. Gazette of India No. 2529 20.12.2010 Notification for withdrawal of 25 paise and below coins
  8. DCM(RMMT)No.1277/11. 6.03/2010- 11 24.8.2010 Exchange Facilities by Currency Chest branches / scheme for providing facilities
  9. DCM(NE)No.1612/08.01. 1/2009- 10 13.9.2009 Notification of Note Refund(Rules), 2009
  10. RBI/2006-07/349/DCM (NE)No.7488/08.07.18/ 2006 - 07 25.4.2007 Acceptance of Small Denomination Notes and Coins.
  11. DCM(RMMT)No.1181/ 11.37.01/2003- 04 05.4.2004 Acceptance of coins.
  12. DCM(NE)No.310/ 08.07.18/2003- 04 19.1.2004 Providing facilities to public for exchange of notes, coins, etc.
  13. DCM(RMMT)No.404/ 11.37.01/2003- 04 09.10.2003 Acceptance of coins and availability of notes.
  14. G-11/08.07.18/2001- 02 02.11.2001 Reserve Bank of India (Note Refund) Rules, 1975 – Delegation of note exchange powers to currency chest branches of Public/Private Sector Banks.
  15. Cy.No.386/08.07.13/2000- 2001 16.11.2000 Reserve Bank of India (Note Refund) Rules, 1975 – Delegation of full note exchange powers to currency chest branches of Public/ Private Sector Banks.
  16. G-67/08.07.18/96- 97 18.2.1997 RBI (Note Refund) Rules, 1975, Delegation of full powers to private sector banks maintaining currency chests
  17. G-52/08.07.18/96- 97 11.1.1997 RBI (NR) Rules Scheme of delegation of powers to PSBs for exchange of defective notes – Disposal of notes bearing PAY/PAID stamp.
  1. G-24/08.01.01/96- 97 03.12.1996 Acceptance of Exchange of Cut Notes
    • Liberalization.
  2. G-64/08.07.18/95- 96 18.5.1996 RBI(NR) Rules – Delegation of full powers to branches PSBs and publicity for exchange of defective notes.
  3. G-71/08.07.18/92- 93 22.6.1993 RBI(NR) Rules – Scheme of delegation of full powers for exchange of defective notes to the branches of PSBs – Publicity.
  4. G-83/CL-1(PSB)-91/92 06.5.1992 RBI(NR) Rules – Delegation of powers to chest branches of PSBs.
  5. G-74/CL-(PSB)(Gen)-90/91 05.9.1991 RBI(NR) Rules – Delegation of full powers there under to PSBs.
  6. 5.5/CL-1(PSB)-90/91 25.9.1990 RBI(NR) Rules – Scheme of delegation of full poweres to PSBs.
  7. 8/CL-1(PSB)-90/91 17.8.1990 RBI(NR) Rules – Scheme of delegation of full powers to PSBs.
  8. G-123/CL-1(PSB)(Gen)- 89/ 07.5.1990 RBI(NR) Rules – Scheme of delegation of full powers to PSBs (Amendment).
  9. G-108/CL-1(PSB)(Gen)- 89/

03.4.1990 RBI(NR) Rules 1989 – Bank notes of `

500/- denomination – Exchange of defective notes at branches of PSBs.

  1. G-8/CL-1(PSB)-89/90 12.7.1989 RBI(NR) Rules – Defective notes branded with 'To Claims' stamp of RBI Issue Offices.
  2. G.84/CL.1(PSB)-88/89 17.3.1989 RBI(NR) Rules – Delegation of full note exchange powers to PSBs.
  3. G.66/CL.1(PSB)-88/89 09.2.1989 RBI(NR) Rules – Delegation of powers to PSBs – Training.
  4. S.12/CL-1(PSB)-88/89 30.9.1988 RBI(NR) Rules – Deliberately mutilated notes – Adjudication.
  5. G.134/CL-1(PSB)-87/89 25.5.1988 Implementation of the Scheme of delegation of full powers under RBI(NR) Rules.
  6. 192/CL- 1 - (PSB)-86/87 02.6.1987 RBI(NR) Rules – Scheme of delegation of full powers to PSBs.
  7. 189/CL.2/86/87 02.6.1987 Defacing currency notes by writing on them or inscribing messages, slogans etc. thereon.
  8. 185/CL-1(PSB)-86/87 20.5.1987 RBI(NR) Rules – Affixing of 'PAY' and 'REJECT' stamps on defective notes.
  9. 173/CL.1/84/85 02.4.1985 Delegation of full powers to PSBs for exchange of defective notes/procedures of the same.
  10. Cy.No.1064/CL.1/76/77 09.8.1976 Facilities to the public for exchange of soiled notes and slightly mutilated notes.