Module: General Practice
Q3: Which of the following statements about service deficiencies and authorities are correct?
The Officer-in-Charge of the Issue Department acts as the "Competent Authority" for deciding on irregularities.
Refusal to exchange soiled notes or non-issue of available coins are both considered a "deficiency in service", attracting a ₹10,000 penalty.
Non-acceptance of lower denomination notes (₹50 and below) tendered by the public is also considered a "deficiency in service."
Small Finance Banks and Payment Banks are required to exchange mutilated notes at all their branches.
Refusal to exchange soiled notes or non-issue of available coins are both considered a "deficiency in service", attracting a ₹10,000 penalty.
Non-acceptance of lower denomination notes (₹50 and below) tendered by the public is also considered a "deficiency in service."
Small Finance Banks and Payment Banks are required to exchange mutilated notes at all their branches.
✅ Correct Answer: A
The RBI Scheme of Penalties defines specific acts, such as refusing to exchange notes, as a Deficiency in Service.
While statements 1, 2, and 3 are correct regarding the Competent Authority and penalty amounts, statement 4 is incorrect because exchanging mutilated notes is optional for Small Finance and Payment Banks.
While statements 1, 2, and 3 are correct regarding the Competent Authority and penalty amounts, statement 4 is incorrect because exchanging mutilated notes is optional for Small Finance and Payment Banks.