Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: General Practice

Q2: Which of the following statements correctly define the condition of currency notes?

A 'soiled note' is a note that has become dirty from normal wear and tear, or is a two-piece note pasted together where both pieces belong to the same note.




A 'mutilated note' is any note that is wholly or partially obliterated, shrunk, or altered.




An 'imperfect note' is a note of which a portion is missing or which is composed of more than two pieces.




A note 'composed of more than two pieces' is classified as a 'mutilated note'.
A
1 and 4 only
B
2 and 3 only
C
1, 2, and 3 only
D
All of the above
✅ Correct Answer: A
Statement 1 and 4 are correct definitions under RBI Note Exchange Rules.
Statement 2 incorrectly defines 'mutilated' (it describes an 'imperfect note'), and Statement 3 incorrectly defines 'imperfect'. Understanding these distinctions is crucial for applying RBI Note Exchange Rules correctly at the counter.