RBI/DCM/2026-27/395 DCM (NE) No.G-2/08.07.18/2026-27 dated: 01.04.2026
The Reserve Bank of India (RBI) has issued a Master Direction on the facility for exchange of notes and coins, under the provisions of the Banking Regulation Act, 1949 and the RBI Act, 1934.
1. Objective of the Master Direction
The framework aims to:
- Provide a uniform and comprehensive mechanism for exchange of notes and coins
- Ensure easy access to currency exchange services for the public
- Strengthen customer service standards across banks
2. Scope of the Framework
The Master Direction covers:
- Exchange of soiled, mutilated, and imperfect notes
- Exchange of coins of various denominations
- Responsibilities of bank branches and currency chests
It ensures that banks follow standardised procedures for handling currency exchange requests.
3. Consolidation of Existing Guidelines
The Direction consolidates all existing circulars, instructions, and master directions on the subject into a single unified framework, simplifying compliance and operational clarity.
4. Withdrawal of Earlier Circulars
All previous circulars and master directions relating to the exchange of notes and coins stand withdrawn upon issuance of this Direction.
5. Effective Date
The Master Direction shall come into force from 1st April 2026.
6. Conclusion
This initiative enhances consistency, accessibility, and efficiency in currency exchange services, while ensuring that banks adhere to standardised practices and improved customer service norms.
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