What Is RBI's Clean Note Policy? Learn In Easy Points
By Anshika Verma14, Feb 2024 01:00 PMjagranjosh.com
Clean Note Policy
The Reserve Bank Of India (RBI) is the main body that is responsible for maintaining and regulating the Indian banking system.
CLEAN NOTE POLICY
The Clean Note Policy of the RBI focuses on providing clean and high-quality currency (coins and notes) with enhanced security features to the public.
SOILED NOTES
The RBI withdraws all the soiled notes from circulation under this 'Clean Notes Policy'. Notes that become dry and torn due to daily use are known as soiled notes.
WITHDRAWAL OF 2000 RUPEE NOTE
Under the Clean Note Policy, the RBI withdrew all the 2000 rupee notes from circulation in September 2023. These notes accounted for only 10.8% of the total currency circulation.
WITHDRAWAL OF ALL BANKNOTES ISSUED BEFORE 2005
The RBI has also withdrawn all the banknotes issued before 2005 because of their low-security features. However, these are still legal tender.
IMPACT OF CLEAN NOTE POLICY
The primary goal of the RBI's Clean Note Policy is to prevent the depreciation of the value of the rupee. It will ensure that notes in circulation are in good condition and of high quality.
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