The Reserve Bank of India (RBI), through its Master Direction updated as on September 01, 2026, has consolidated and updated the instructions relating to the facility for exchange of notes and coins available to members of the public. The earlier circulars and Master Directions listed in Annex II stand withdrawn from the date of issuance of this Master Direction.
The following has been stated:
All bank branches are required to provide facilities for issuing fresh notes and coins, exchanging soiled, mutilated and imperfect notes, and accepting notes and coins for transactions or exchange. These facilities must be provided to both customers and non-customers without discrimination on all working days.
Bank branches cannot refuse to accept coins or small denomination notes. Coins of 50 paise, ₹1, ₹2, ₹5, ₹10 and ₹20 continue to be legal tender, while coins of 25 paise and below ceased to be legal tender from June 30, 2011.
Soiled notes up to 20 pieces and with a maximum value of ₹5,000 per day must be exchanged over the counter free of charge. For bulk quantities exceeding these limits, banks may accept the notes against a receipt and credit the value later, with the payment period not exceeding 7 days.
All bank branches are required to exchange mutilated and imperfect notes. Notes presented in small numbers of up to 10 pieces should normally be adjudicated and paid over the counter, while bulk submissions may be accepted for later credit. Where adjudication is not possible at a non-Currency Chest branch, the payment period should not exceed 30 calendar days.
Notes that are extremely brittle, charred or inseparably stuck together and cannot withstand normal handling should not be accepted at bank branches and must instead be tendered to the relevant RBI Issue Office under the prescribed special procedure.
Banks must provide note counting machines at payment counters and maintain adequate stocks of coins for distribution. Customers may approach the concerned bank branch for grievances and subsequently the RBI Integrated Ombudsman Scheme if the grievance remains unresolved.
Banks are also required to display prominently that soiled and mutilated notes and coins are accepted and exchanged, ensure regular monitoring and compliance, provide training to prescribed officers, and process personal data in accordance with the Digital Personal Data Protection Act, 2023 and applicable rules.
Please refer to the document attached below for more details.
[Circular No.: RBI/DCM/2026-27/395]
