Demonetisation caused many economic hardships to different strata of society, but a new problem has turned up recently. Soiled or damaged notes of the Rs 200 or 2,000 denominations—which were introduced after the sudden announcement by Prime Minister Narendra Modi on November 8, 2016, to curb black money—cannot be exchanged. At least, not for now.
Though the Reserve Bank of India has been periodically introducing more and more notes of the Rs 200 and 2,000 denominations, the RBI has not updated or modified the Reserve Bank of India (Note Refund) Rules of 2009 to include these new denominations!
The RBI (Note Refund) Rules of 2009 cover only currency notes that existed prior to demonetisation. In fact, the Rs 1,000 and the old Rs 500 notes have not been deleted from these rules.
Though the RBI did issue a fresh “Master Circular—Facility for Exchange of Notes and Coins” on July 3, 2017, it merely emphasises that banks may continue to follow the Note Refund Rules of 2009.
In fact, the Note Refund Rules carry a table, which lists the denominations and length, width and area of each denomination, and the minimum area that needs to be presented to the banks for exchange—of full value and half value. For example, at least 70 per cent of the 107 square centimetre of an old and torn Rs 50 note has to be presented to get back Rs 50. And one has to present at least 43 per cent of that note to get in exchange Rs 25!
The new post-demonetisation currency notes have just about begun to set soiled, mutilated and worn and torn out of usage. Following the rules that bind them, bank staff are sending back customers, asking them to wait till the RBI issues guidelines on these.