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Module: General Practice

Q4: According to the Reserve Bank of India (Note Refund) Amendment Rules, 2018, why were amendments made to the Note Refund Rules, 2009?

A
To introduce new penalties for banks failing to exchange notes.
B
To enable the public to exchange mutilated notes in the Mahatma Gandhi (New) series, which are smaller, and to revise the minimum area required for full value payment.
C
To stop the exchange of all notes from series prior to the Mahatma Gandhi (New) series.
D
To delegate the power of note exchange from bank branches to RBI Regional Offices only.
✅ Correct Answer: B
The 2018 amendments to RBI Note Exchange Rules were specifically made to accommodate the smaller size of the Mahatma Gandhi (New) series.
This ensured the RBI Note Exchange Rules remained relevant for determining the minimum area required for full value payment.
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