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

Q8: What is the "Clean Note Policy"?

A
A policy requiring all banks to use Note Sorting Machines
B
A policy adopted by the RBI, to ensure the availability of good quality banknotes to the public
C
A policy detailing the penalties for counterfeit notes
D
A policy for opening new currency chests
✅ Correct Answer: B
The RBI Scheme of Penalties is the enforcement arm of the Clean Note Policy.
The policy's primary goal (Option B) is to maintain the integrity of currency in circulation by ensuring the public has access to good quality banknotes.