In an effort to improve customer service, the Reserve Bank of India (RBI) on Thursday asked banks to exchange up to 20 pieces of soiled currency notes with a maximum value of Rs 5,000 over the counter free of charge. However, if the number of notes to be exchanged is more than 20, banks can levy service charge.
The facility of exchanging mutilated or imperfect notes is available at designated bank branches and also non-chest branches. “Notes presented in small number: Where the number of notes presented by a person is up to 20 pieces with a maximum value of Rs 5000 per day, banks should exchange them over the counter, free of charge,” the RBI said while reviewing for exchange of soiled notes by banks.
In case notes are presented in bulk (where the number exceeds 20 pieces or Rs 5,000 in value per day), banks will accept them, against receipt, for value to be credited later. In case of bulk exchange, banks can levy service charges.
If the tendered value is above Rs 50,000, banks are expected to take the usual precautions, RBI said. Further, the RBI also laid down norms for non-chest branches for exchange of soiled notes.
Where the number of notes presented by a person is up to 5 pieces per day, non-chest branches should normally adjudicate the notes as per the procedure and pay the exchange value over the counter.
Meanwhile, mindful of the growing importance of financial technology innovations, the RBI has set up a working group to work out a regulatory framework to bolster financial technology and digital banking. “RBI has set up an inter-regulatory working group to study the entire gamut of regulatory issues relating to financial technology and digital banking in India,” RBI said in a release.
The sub-committee of the Financial Stability and Development Council at its meeting held on April 26 had decided to set up such a group to look into the issue and report the finer aspects. The mandate is to gauge implications, review and appropriately reorient the regulatory framework and respond to the dynamics of the rapidly-evolving financial technology scenario.
Among the terms of reference of the working group is “to chalk out appropriate regulatory response with a view to re-aligning/re-orienting regulatory guidelines and statutory provisions for enhancing financial technology/digital banking associated opportunities while simultaneously managing the evolving challenges and risk dimensions,” RBI said.
It is also tasked with assessing opportunities and risks arising from digitisation and use of financial technology, besides finding how these can be utilised for optimising financial product innovation and delivery to the benefit of users and other stakeholders.
RBI said the group will also assess the implications and challenges for the various financial sector functions such as intermediation, clearing, payments being taken up by non-financial entities.