Scribbled Currency Notes are Legal Tender : RBI

There were rumors in the public that new currency notes of denominations of Rs.500 and Rs.200 having something scribbled on them are not legal tender. Various incidence of branches of some banks not accepting, if there is scribbling on currency notes, have also come into light.

You may imagine a situation when you withdraw money and ATM dispense you currency note having scribbled something on it. In the wake of these rumors, shopkeepers were also resisting for accepting these scribbled notes.

RBI has clarified that currency notes (including new notes of Rs.500 and Rs.2000) even with scribbles are legal tender. Financial Newspaper Live Mint has reported that RBI in an email has clarified that “There is no instruction to anyone not to accept any currency notes with scribbling on it even though we do, from time to time, keep appealing to people not to write/ staple/ fold currency notes as these things lessen the life of currency notes.

So, scribbling on currency notes does not take away its illegal tender feature. So, if you have scribbling on a 2000 note, relax, this is a legal tender and banks will accept.

The news should be a sigh of relief for those, who might have been cursing their luck for getting a scribbled note.

the rumor that currency notes with scribble is not legal tender is not first time and earlier also, RBI had clarified that there are no such rules or directions.

The reserve Bank of India, keeps on advising banks to follow Clean Note Policy and also urges general public to refrain from writing on currency notes.

But, since, there are no directions from RBI, Banks can not deny to accept scribbled notes because these are legal tender.

As per RBI’s master directions, Bank Branches must provide Facility for exchange of Soiled and Mutilated Notes.

Jai

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