RBI issues Master Directions on Notes and Coins Exchange Facility

Current Context: On April 1, 2026, the RBI issued Master Direction – Facility for Exchange of Notes and Coins (RBI/DCM/2026-27/395).

• This unified framework consolidates earlier circulars, strengthens the Clean Note Policy, and makes currency exchange a mandatory, free service across all banks.

Key Highlights

• Universal Service: All bank branches must provide exchange facilities to customers and non-customers, free of cost.

Small Finance/Payment Banks: Two-year opt-in for mutilated note exchange.
Note Rules:

• Soiled notes → full value.
• Mutilated/Imperfect notes → adjudicated (full/half/zero) based on essential features (portrait, signature, emblem, watermark).

Service Standards:

• Immediate exchange up to ₹5,000/day.
• Bulk (>20 notes or >₹5,000) credited within 7 days.
• Mutilated bulk adjudicated within 30 days.

Coin Acceptance: Mandatory; weighment allowed for ₹1/₹2 coins; sachets of 100 coins to ease transactions.

Tech & Monitoring: Dual-display counting machines, mandatory CIMS reporting, and strict “No Scribbling” rule.

Question

Q.1 Under Reserve Bank of India guidelines, bulk exchange requests must be credited within:

a) 3 days
b) 5 days
c) 7 days
d) 30 days

Answer: c) RBI sets a 7-day timeline for processing bulk exchanges.