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Sujai Adithya
Business Development and Banking & Financial Services Expert
Asked a question last year

What is the Clean Note Policy of RBI?

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Sujai Adithya
Business Development and Banking & Financial Services Expert

Many people in our country have a bad habit of writing anything on the currency note, folding currency note, also somebody staple it which spoils the Note and reduces notes durability.
So to avoid such occurrences RBI introduced the Clean Note Policy in 2001 in an order to increase the life of currency notes.

The main objective of this Clean Note Policy is to provide good quality currency notes and coins to the citizens of our country. Also, the objective of this policy is to avoid the circulation of spoiled notes in the economy.


  • According to this policy packets of notes are not stapled with a pin while the banding of such packets should be done by paper or polyethene bands so as to increase the life of the currency notes.The note packets can also be bound by rubber bands in order to minimize the damage of currency notes.
  • Banks should sort the notes in two parts like re-issuable and non-issuable.
  • RBI instructed all the banks to circulate good quality notes to the public and do not circulate spoiled notes in the counters of the bank which they have received from people.
  • Banks are instructed to provide clean currency in exchange of spoiled notes.
  • RBI also provided the guideline for citizens of a country which says that avoid spoiling notes by oil, water etc. Do not write anything on the currency notes.
  • According to RBI, the clear objective of providing good clean quality notes to the public by the banks is provided under the section 35A of banking regulations act 1949 and if the bank does not follow this then that bank may be punishable and the license of such bank can be cancelled.