Please note that the Reserve Bank of India (RBI) has clarified that that currency notes with scribbles are legal tender. “There is no RBI instruction to anyone not to accept any currency note with scribbling on it even though we do, from time to time, keep appealing to people not to write/staple/fold currency notes as these things lessen the life of currency notes”.
Therefore, nobody can refuse to accept any currency notes on which something is written, since these notes continue to be legally valid.
Further, mutilated or soiled notes can be exchanged free of charge from banks. In this regard, refer to the RBI Circular of July 14, 2016. As per this Circular, where the number of soiled notes presented by a person is up to 20 pieces with a maximum value of Rs.5000 per day, banks should exchange them over the counter, free of charge. Where the number of soiled notes presented by a person exceeds 20 pieces or Rs.5000 in value per day, banks may accept them, against receipt, for value to be credited later. Banks may levy service charges as permitted by RBI. In case tendered value of soiled notes is above Rs.50000, banks are expected to take the usual precautions. In the above circular, instructions have been issued for exchange of mutilated and imperfect currency notes also.
Violation of such guidelines by RBI may attract penalty.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.