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: Which of the following statements correctly define different types of bank notes?

A "soiled note" is a note dirty from normal wear, or a two-piece note, where both pieces belong to the same note.




A "mutilated note" is a note with a missing portion, or one that is composed of more than two pieces.




An "imperfect note" is a note that is wholly or partially obliterated, shrunk, or altered, but is not classified as a mutilated note.




A "mutilated note" is any note that is simply washed or shrunk, even if it is fully intact.
A
1 and 2 only
B
1, 2, and 3 only
C
2 and 3 only
D
All of the above
✅ Correct Answer: B
The RBI Scheme of Penalties relies on precise definitions.
Statements 1, 2, and 3 correctly define soiled, mutilated, and imperfect notes.
Statement 4 is incorrect because a shrunk or washed note is technically classified as an "Imperfect Note," not a mutilated one.