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

Q6: Which of the following statements regarding the rejection of notes under the Note Refund Rules (NRR) are correct?

A banknote with a political or religious slogan written across it ceases to be legal tender and will be rejected.




A note bearing a 'PAY' or 'PAID' stamp from an RBI Issue Office or bank branch, if presented for payment again, shall be rejected.




A note that is found to be deliberately cut, torn, altered, or tampered with may be rejected.




Banknotes with general scribbling or color stains, which do not obscure features, continue to be legal tender and can be exchanged.
A
1 and 2 only
B
2, 3 and 4 only
C
1, 3 and 4 only
D
All of the above
✅ Correct Answer: D
All statements are correct per RBI Note Exchange Rules.
Notes with slogans, 'PAID' stamps, or deliberate cuts are rejected.
However, simple scribbling is allowed.
These rejection criteria are derived directly from the Note Refund Rules 2009 which govern the RBI Note Exchange Rules.