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

Q7: What procedure should bank branches follow for notes which are extremely brittle, charred, or inseparably stuck up together and cannot withstand normal handling?

A
Exchange them over the counter immediately by levying a special service charge.
B
Accept them against a receipt and send them to the linked currency chest for a 30-day adjudication.
C
Refuse to accept them and advise the holder to tender them to an Issue Office of the Reserve Bank of India.
D
Adjudicate them under the normal procedure and pay half-value.
✅ Correct Answer: C
Bank branches must not accept extremely brittle or charred notes under RBI Note Exchange Rules.
The correct procedure dictates advising the customer to tender them directly to an RBI Issue Office, as standard branch handling procedures in RBI Note Exchange Rules do not cover such fragile currency.