- Home
- 1
UDHAMPUR EXCLUSIVE… Shopkeepers violating RBI directive of not stapling Currency notes
Young Bites. Dated: 11/22/2017 10:08:11 AM
SUMEET KARNAL SHARMA
Udhampur, Nov 21
Reserve Bank of India (RBI) has clearly instructed and directed all banks not to staple notes, pins and use paper bands, rubber bands or threads to bundle them. But this directive has been freely violated in the Town as the stapled currency note bundles of various denominations continue to be in circulation.
Even as the modernisation of the currency distribution process has been set in motion by the Reserve Bank of India (RBI) with the objective that adequate and good quality clean currency notes are made available to the general public stapling of currency notes continues to be a stumbling block for such efforts. Following the directives of the Reserve Bank, the banks adopted a clean note policy and passed on the instructions to their branches but the cosmetic and some other shopkeepers are the prime runners who totally violated these directives by stapling the currency notes
Currency notes are being stapled for making garlands which are being used in weddings, which is a clear violation of the directions of RBI, but no action has been taken till date. How do the shopkeepers arrange the bundles of denomination of money for the garlands. As per locals, due to links with lower staff of banks these shopkeepers are able to arrange bundles of same denominations for garlands.
The Banks started issuing instructions regularly to banks from 1998 to discontinue the practice and the directive against stapling was issued in November 2002. While making it mandatory for banks to discontinue the practice of stapling currency note packets, the apex bank issued a directive to banks under Section 35A of the Banking Regulation Act, 1949 with the objective of giving clean and good notes to the members of the public. If a bank does not implement a directive issued under this section of the Banking Regulation Act, then the Reserve Bank can penalize the banks.